Correlation Between Shenzhen Clou and Shengtak New
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By analyzing existing cross correlation between Shenzhen Clou Electronics and Shengtak New Material, you can compare the effects of market volatilities on Shenzhen Clou and Shengtak New 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 Shengtak New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Clou and Shengtak New.
Diversification Opportunities for Shenzhen Clou and Shengtak New
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and Shengtak is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Clou Electronics and Shengtak New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengtak New Material 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 Shengtak New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengtak New Material has no effect on the direction of Shenzhen Clou i.e., Shenzhen Clou and Shengtak New go up and down completely randomly.
Pair Corralation between Shenzhen Clou and Shengtak New
Assuming the 90 days trading horizon Shenzhen Clou Electronics is expected to under-perform the Shengtak New. In addition to that, Shenzhen Clou is 2.2 times more volatile than Shengtak New Material. It trades about -0.21 of its total potential returns per unit of risk. Shengtak New Material is currently generating about -0.17 per unit of volatility. If you would invest 3,324 in Shengtak New Material on October 11, 2024 and sell it today you would lose (215.00) from holding Shengtak New Material or give up 6.47% 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. Shengtak New Material
Performance |
| Timeline |
| Shenzhen Clou Electronics |
| Shengtak New Material |
Shenzhen Clou and Shengtak New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Clou and Shengtak New
The main advantage of trading using opposite Shenzhen Clou and Shengtak New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Clou position performs unexpectedly, Shengtak New 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 Shengtak New will offset losses from the drop in Shengtak New's long position.| Shenzhen Clou vs. China Everbright Bank | Shenzhen Clou vs. Shenzhen Kexin Communication | Shenzhen Clou vs. SUNSEA Telecommunications Co | Shenzhen Clou vs. Telling Telecommunication Holding |
| Shengtak New vs. Hangzhou Gaoxin Rubber | Shengtak New vs. Shanghai Phichem Material | Shengtak New vs. Orinko Advanced Plastics | Shengtak New vs. Jilin OLED Material |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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