Correlation Between Shenzhen Clou and Invengo Information
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By analyzing existing cross correlation between Shenzhen Clou Electronics and Invengo Information Technology, you can compare the effects of market volatilities on Shenzhen Clou and Invengo Information 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 Invengo Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Clou and Invengo Information.
Diversification Opportunities for Shenzhen Clou and Invengo Information
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Invengo is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Clou Electronics and Invengo Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invengo Information 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 Invengo Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invengo Information has no effect on the direction of Shenzhen Clou i.e., Shenzhen Clou and Invengo Information go up and down completely randomly.
Pair Corralation between Shenzhen Clou and Invengo Information
Assuming the 90 days trading horizon Shenzhen Clou Electronics is expected to generate 1.0 times more return on investment than Invengo Information. However, Shenzhen Clou is 1.0 times more volatile than Invengo Information Technology. It trades about -0.3 of its potential returns per unit of risk. Invengo Information Technology is currently generating about -0.41 per unit of risk. If you would invest 514.00 in Shenzhen Clou Electronics on October 15, 2024 and sell it today you would lose (112.00) from holding Shenzhen Clou Electronics or give up 21.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Clou Electronics vs. Invengo Information Technology
Performance |
| Timeline |
| Shenzhen Clou Electronics |
| Invengo Information |
Shenzhen Clou and Invengo Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Clou and Invengo Information
The main advantage of trading using opposite Shenzhen Clou and Invengo Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Clou position performs unexpectedly, Invengo Information 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 Invengo Information will offset losses from the drop in Invengo Information'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 |
| Invengo Information vs. Rising Nonferrous Metals | Invengo Information vs. Shenzhen Clou Electronics | Invengo Information vs. Leyard Optoelectronic | Invengo Information vs. Jahen Household Products |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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