Correlation Between Shenzhen Noposion and Tongxing Environmental
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Tongxing Environmental Protection, you can compare the effects of market volatilities on Shenzhen Noposion and Tongxing Environmental 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 Tongxing Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Tongxing Environmental.
Diversification Opportunities for Shenzhen Noposion and Tongxing Environmental
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Tongxing is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical and Tongxing Environmental Protect in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongxing Environmental 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 Tongxing Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongxing Environmental has no effect on the direction of Shenzhen Noposion i.e., Shenzhen Noposion and Tongxing Environmental go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Tongxing Environmental
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to generate 0.86 times more return on investment than Tongxing Environmental. However, Shenzhen Noposion Agrochemicals is 1.16 times less risky than Tongxing Environmental. It trades about 0.08 of its potential returns per unit of risk. Tongxing Environmental Protection is currently generating about 0.01 per unit of risk. If you would invest 657.00 in Shenzhen Noposion Agrochemicals on October 29, 2024 and sell it today you would earn a total of 356.00 from holding Shenzhen Noposion Agrochemicals or generate 54.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. Tongxing Environmental Protect
Performance |
| Timeline |
| Shenzhen Noposion |
| Tongxing Environmental |
Shenzhen Noposion and Tongxing Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Tongxing Environmental
The main advantage of trading using opposite Shenzhen Noposion and Tongxing Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion position performs unexpectedly, Tongxing Environmental 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 Tongxing Environmental will offset losses from the drop in Tongxing Environmental's long position.| Shenzhen Noposion vs. JCHX Mining Management | Shenzhen Noposion vs. Xinjiang Baodi Mining | Shenzhen Noposion vs. Kingsignal Technology Co | Shenzhen Noposion vs. Chenzhou Jingui Silver |
| Tongxing Environmental vs. Industrial and Commercial | Tongxing Environmental vs. Agricultural Bank of | Tongxing Environmental vs. China Construction Bank | Tongxing Environmental 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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