Correlation Between Shenzhen Clou and Guangdong Jingyi
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By analyzing existing cross correlation between Shenzhen Clou Electronics and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Shenzhen Clou and Guangdong Jingyi 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 Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Clou and Guangdong Jingyi.
Diversification Opportunities for Shenzhen Clou and Guangdong Jingyi
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Guangdong is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Clou Electronics and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal 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 Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Shenzhen Clou i.e., Shenzhen Clou and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Shenzhen Clou and Guangdong Jingyi
Assuming the 90 days trading horizon Shenzhen Clou Electronics is expected to under-perform the Guangdong Jingyi. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Clou Electronics is 1.11 times less risky than Guangdong Jingyi. The stock trades about -0.04 of its potential returns per unit of risk. The Guangdong Jingyi Metal is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 628.00 in Guangdong Jingyi Metal on October 16, 2024 and sell it today you would earn a total of 14.00 from holding Guangdong Jingyi Metal or generate 2.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Clou Electronics vs. Guangdong Jingyi Metal
Performance |
Timeline |
Shenzhen Clou Electronics |
Guangdong Jingyi Metal |
Shenzhen Clou and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Clou and Guangdong Jingyi
The main advantage of trading using opposite Shenzhen Clou and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Clou position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi's long position.Shenzhen Clou vs. Jinxiandai Information Industry | Shenzhen Clou vs. Hangzhou Gisway Information | Shenzhen Clou vs. Longmaster Information Tech | Shenzhen Clou vs. Sinomach Automobile Co |
Guangdong Jingyi vs. Epoxy Base Electronic | Guangdong Jingyi vs. Shenzhen Clou Electronics | Guangdong Jingyi vs. Anhui Shiny Electronic | Guangdong Jingyi vs. Huasi Agricultural Development |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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