Correlation Between Shenzhen Clou and Qinghai Salt
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Clou Electronics and Qinghai Salt Lake, you can compare the effects of market volatilities on Shenzhen Clou and Qinghai Salt 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 Qinghai Salt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Clou and Qinghai Salt.
Diversification Opportunities for Shenzhen Clou and Qinghai Salt
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and Qinghai is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Clou Electronics and Qinghai Salt Lake in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qinghai Salt Lake 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 Qinghai Salt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qinghai Salt Lake has no effect on the direction of Shenzhen Clou i.e., Shenzhen Clou and Qinghai Salt go up and down completely randomly.
Pair Corralation between Shenzhen Clou and Qinghai Salt
Assuming the 90 days trading horizon Shenzhen Clou Electronics is expected to under-perform the Qinghai Salt. In addition to that, Shenzhen Clou is 2.96 times more volatile than Qinghai Salt Lake. It trades about -0.3 of its total potential returns per unit of risk. Qinghai Salt Lake is currently generating about -0.15 per unit of volatility. If you would invest 1,654 in Qinghai Salt Lake on October 15, 2024 and sell it today you would lose (64.00) from holding Qinghai Salt Lake or give up 3.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Clou Electronics vs. Qinghai Salt Lake
Performance |
| Timeline |
| Shenzhen Clou Electronics |
| Qinghai Salt Lake |
Shenzhen Clou and Qinghai Salt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Clou and Qinghai Salt
The main advantage of trading using opposite Shenzhen Clou and Qinghai Salt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Clou position performs unexpectedly, Qinghai Salt 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 Qinghai Salt will offset losses from the drop in Qinghai Salt's long position.| Shenzhen Clou vs. Anji Foodstuff Co | Shenzhen Clou vs. Shenzhen Topway Video | Shenzhen Clou vs. Jiangsu Yanghe Brewery | Shenzhen Clou vs. Shantou Wanshun Package |
| Qinghai Salt vs. Integrated Electronic Systems | Qinghai Salt vs. YiDong Electronics Technology | Qinghai Salt vs. Tonghua Grape Wine | Qinghai Salt vs. Shenzhen Clou Electronics |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |