Correlation Between Shenzhen Clou and Shandong Publishing
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By analyzing existing cross correlation between Shenzhen Clou Electronics and Shandong Publishing Media, you can compare the effects of market volatilities on Shenzhen Clou and Shandong Publishing 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 Shandong Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Clou and Shandong Publishing.
Diversification Opportunities for Shenzhen Clou and Shandong Publishing
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shenzhen and Shandong is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Clou Electronics and Shandong Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Publishing Media 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 Shandong Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Publishing Media has no effect on the direction of Shenzhen Clou i.e., Shenzhen Clou and Shandong Publishing go up and down completely randomly.
Pair Corralation between Shenzhen Clou and Shandong Publishing
Assuming the 90 days trading horizon Shenzhen Clou Electronics is expected to generate 1.51 times more return on investment than Shandong Publishing. However, Shenzhen Clou is 1.51 times more volatile than Shandong Publishing Media. It trades about 0.14 of its potential returns per unit of risk. Shandong Publishing Media is currently generating about -0.1 per unit of risk. If you would invest 344.00 in Shenzhen Clou Electronics on August 29, 2024 and sell it today you would earn a total of 99.00 from holding Shenzhen Clou Electronics or generate 28.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Clou Electronics vs. Shandong Publishing Media
Performance |
| Timeline |
| Shenzhen Clou Electronics |
| Shandong Publishing Media |
Shenzhen Clou and Shandong Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Clou and Shandong Publishing
The main advantage of trading using opposite Shenzhen Clou and Shandong Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Clou position performs unexpectedly, Shandong Publishing 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 Shandong Publishing will offset losses from the drop in Shandong Publishing's 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 |
| Shandong Publishing vs. Industrial and Commercial | Shandong Publishing vs. Agricultural Bank of | Shandong Publishing vs. China Construction Bank | Shandong Publishing vs. Bank of China |
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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