Correlation Between Shenzhen Noposion and Tianjin LVYIN
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Tianjin LVYIN Landscape, you can compare the effects of market volatilities on Shenzhen Noposion and Tianjin LVYIN 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 Noposion with a short position of Tianjin LVYIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Tianjin LVYIN.
Diversification Opportunities for Shenzhen Noposion and Tianjin LVYIN
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Tianjin is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical and Tianjin LVYIN Landscape in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin LVYIN Landscape and Shenzhen Noposion 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 Noposion Agrochemicals are associated (or correlated) with Tianjin LVYIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin LVYIN Landscape has no effect on the direction of Shenzhen Noposion i.e., Shenzhen Noposion and Tianjin LVYIN go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Tianjin LVYIN
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to generate 1.12 times more return on investment than Tianjin LVYIN. However, Shenzhen Noposion is 1.12 times more volatile than Tianjin LVYIN Landscape. It trades about -0.1 of its potential returns per unit of risk. Tianjin LVYIN Landscape is currently generating about -0.53 per unit of risk. If you would invest 1,130 in Shenzhen Noposion Agrochemicals on October 15, 2024 and sell it today you would lose (83.00) from holding Shenzhen Noposion Agrochemicals or give up 7.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. Tianjin LVYIN Landscape
Performance |
| Timeline |
| Shenzhen Noposion |
| Tianjin LVYIN Landscape |
Shenzhen Noposion and Tianjin LVYIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Tianjin LVYIN
The main advantage of trading using opposite Shenzhen Noposion and Tianjin LVYIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion position performs unexpectedly, Tianjin LVYIN 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 Tianjin LVYIN will offset losses from the drop in Tianjin LVYIN's long position.| Shenzhen Noposion vs. Dongfeng Automobile Co | Shenzhen Noposion vs. Guangzhou Haige Communications | Shenzhen Noposion vs. Wuhan Yangtze Communication | Shenzhen Noposion vs. Allwin Telecommunication Co |
| Tianjin LVYIN vs. Shandong Rike Chemical | Tianjin LVYIN vs. Longxing Chemical Stock | Tianjin LVYIN vs. Shenzhen Noposion Agrochemicals | Tianjin LVYIN vs. Ningxia Younglight Chemicals |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |