Correlation Between Shenzhen Coship and Shenzhen Changfang
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By analyzing existing cross correlation between Shenzhen Coship Electronics and Shenzhen Changfang Light, you can compare the effects of market volatilities on Shenzhen Coship and Shenzhen Changfang and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Shenzhen Coship with a short position of Shenzhen Changfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Coship and Shenzhen Changfang.
Diversification Opportunities for Shenzhen Coship and Shenzhen Changfang
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Shenzhen is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Coship Electronics and Shenzhen Changfang Light in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Changfang Light and Shenzhen Coship is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Shenzhen Coship Electronics are associated (or correlated) with Shenzhen Changfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Changfang Light has no effect on the direction of Shenzhen Coship i.e., Shenzhen Coship and Shenzhen Changfang go up and down completely randomly.
Pair Corralation between Shenzhen Coship and Shenzhen Changfang
Assuming the 90 days trading horizon Shenzhen Coship Electronics is expected to generate 1.13 times more return on investment than Shenzhen Changfang. However, Shenzhen Coship is 1.13 times more volatile than Shenzhen Changfang Light. It trades about 0.13 of its potential returns per unit of risk. Shenzhen Changfang Light is currently generating about -0.05 per unit of risk. If you would invest 615.00 in Shenzhen Coship Electronics on October 14, 2024 and sell it today you would earn a total of 62.00 from holding Shenzhen Coship Electronics or generate 10.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Coship Electronics vs. Shenzhen Changfang Light
Performance |
| Timeline |
| Shenzhen Coship Elec |
| Shenzhen Changfang Light |
Shenzhen Coship and Shenzhen Changfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Coship and Shenzhen Changfang
The main advantage of trading using opposite Shenzhen Coship and Shenzhen Changfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Coship position performs unexpectedly, Shenzhen Changfang can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Shenzhen Changfang will offset losses from the drop in Shenzhen Changfang's long position.| Shenzhen Coship vs. Lontium Semiconductor Corp | Shenzhen Coship vs. Southchip Semiconductor Technology | Shenzhen Coship vs. Nanxing Furniture Machinery | Shenzhen Coship vs. Union Semiconductor Co |
| Shenzhen Changfang vs. Humanwell Healthcare Group | Shenzhen Changfang vs. Lotus Health Group | Shenzhen Changfang vs. Healthcare Co | Shenzhen Changfang vs. Ligao Foods CoLtd |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the CEOs Directory module to screen CEOs from public companies around the world.
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