Correlation Between Shenzhen Clou and Lander Sports
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By analyzing existing cross correlation between Shenzhen Clou Electronics and Lander Sports Development, you can compare the effects of market volatilities on Shenzhen Clou and Lander Sports 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 Clou with a short position of Lander Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Clou and Lander Sports.
Diversification Opportunities for Shenzhen Clou and Lander Sports
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Lander is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Clou Electronics and Lander Sports Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lander Sports Development and Shenzhen Clou 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 Clou Electronics are associated (or correlated) with Lander Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lander Sports Development has no effect on the direction of Shenzhen Clou i.e., Shenzhen Clou and Lander Sports go up and down completely randomly.
Pair Corralation between Shenzhen Clou and Lander Sports
Assuming the 90 days trading horizon Shenzhen Clou is expected to generate 1.8 times less return on investment than Lander Sports. But when comparing it to its historical volatility, Shenzhen Clou Electronics is 1.17 times less risky than Lander Sports. It trades about 0.03 of its potential returns per unit of risk. Lander Sports Development is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 282.00 in Lander Sports Development on August 29, 2024 and sell it today you would earn a total of 11.00 from holding Lander Sports Development or generate 3.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Clou Electronics vs. Lander Sports Development
Performance |
| Timeline |
| Shenzhen Clou Electronics |
| Lander Sports Development |
Shenzhen Clou and Lander Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Clou and Lander Sports
The main advantage of trading using opposite Shenzhen Clou and Lander Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Clou position performs unexpectedly, Lander Sports 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 Lander Sports will offset losses from the drop in Lander Sports' long position.| Shenzhen Clou vs. PetroChina Co Ltd | Shenzhen Clou vs. China State Construction | Shenzhen Clou vs. China Mobile Limited | Shenzhen Clou vs. Industrial and Commercial |
| Lander Sports vs. Cambricon Technologies Corp | Lander Sports vs. Empyrean Technology Co | Lander Sports vs. Kuang Chi Technologies | Lander Sports vs. Gansu Jiu Steel |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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