Correlation Between Shenzhen Sunlord and Shenzhen Inovance
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By analyzing existing cross correlation between Shenzhen Sunlord Electronics and Shenzhen Inovance Tech, you can compare the effects of market volatilities on Shenzhen Sunlord and Shenzhen Inovance 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 Sunlord with a short position of Shenzhen Inovance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Sunlord and Shenzhen Inovance.
Diversification Opportunities for Shenzhen Sunlord and Shenzhen Inovance
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Shenzhen is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Sunlord Electronics and Shenzhen Inovance Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Inovance Tech and Shenzhen Sunlord 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 Sunlord Electronics are associated (or correlated) with Shenzhen Inovance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Inovance Tech has no effect on the direction of Shenzhen Sunlord i.e., Shenzhen Sunlord and Shenzhen Inovance go up and down completely randomly.
Pair Corralation between Shenzhen Sunlord and Shenzhen Inovance
Assuming the 90 days trading horizon Shenzhen Sunlord Electronics is expected to generate 1.15 times more return on investment than Shenzhen Inovance. However, Shenzhen Sunlord is 1.15 times more volatile than Shenzhen Inovance Tech. It trades about 0.1 of its potential returns per unit of risk. Shenzhen Inovance Tech is currently generating about 0.06 per unit of risk. If you would invest 3,162 in Shenzhen Sunlord Electronics on September 28, 2024 and sell it today you would earn a total of 108.00 from holding Shenzhen Sunlord Electronics or generate 3.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Sunlord Electronics vs. Shenzhen Inovance Tech
Performance |
| Timeline |
| Shenzhen Sunlord Ele |
| Shenzhen Inovance Tech |
Shenzhen Sunlord and Shenzhen Inovance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Sunlord and Shenzhen Inovance
The main advantage of trading using opposite Shenzhen Sunlord and Shenzhen Inovance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Sunlord position performs unexpectedly, Shenzhen Inovance 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 Shenzhen Inovance will offset losses from the drop in Shenzhen Inovance's long position.| Shenzhen Sunlord vs. Industrial and Commercial | Shenzhen Sunlord vs. China Construction Bank | Shenzhen Sunlord vs. Agricultural Bank of | Shenzhen Sunlord vs. Bank of China |
| Shenzhen Inovance vs. Innovative Medical Management | Shenzhen Inovance vs. Gifore Agricultural Machinery | Shenzhen Inovance vs. JCHX Mining Management | Shenzhen Inovance vs. Long Yuan Construction |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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