Correlation Between Shenzhen Noposion and Jinsanjiang Silicon
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Jinsanjiang Silicon Material, you can compare the effects of market volatilities on Shenzhen Noposion and Jinsanjiang Silicon 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 Jinsanjiang Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Jinsanjiang Silicon.
Diversification Opportunities for Shenzhen Noposion and Jinsanjiang Silicon
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenzhen and Jinsanjiang is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical and Jinsanjiang Silicon Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinsanjiang Silicon 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 Jinsanjiang Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinsanjiang Silicon has no effect on the direction of Shenzhen Noposion i.e., Shenzhen Noposion and Jinsanjiang Silicon go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Jinsanjiang Silicon
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to generate 0.65 times more return on investment than Jinsanjiang Silicon. However, Shenzhen Noposion Agrochemicals is 1.53 times less risky than Jinsanjiang Silicon. It trades about 0.08 of its potential returns per unit of risk. Jinsanjiang Silicon Material is currently generating about 0.03 per unit of risk. If you would invest 673.00 in Shenzhen Noposion Agrochemicals on October 18, 2024 and sell it today you would earn a total of 349.00 from holding Shenzhen Noposion Agrochemicals or generate 51.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. Jinsanjiang Silicon Material
Performance |
| Timeline |
| Shenzhen Noposion |
| Jinsanjiang Silicon |
Shenzhen Noposion and Jinsanjiang Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Jinsanjiang Silicon
The main advantage of trading using opposite Shenzhen Noposion and Jinsanjiang Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion position performs unexpectedly, Jinsanjiang Silicon 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 Jinsanjiang Silicon will offset losses from the drop in Jinsanjiang Silicon's long position.| Shenzhen Noposion vs. Uroica Mining Safety | Shenzhen Noposion vs. Shantui Construction Machinery | Shenzhen Noposion vs. Nanxing Furniture Machinery | Shenzhen Noposion vs. Spring Airlines Co |
| Jinsanjiang Silicon vs. Soochow Suzhou Industrial | Jinsanjiang Silicon vs. Gem Year Industrial Co | Jinsanjiang Silicon vs. Marssenger Kitchenware Co | Jinsanjiang Silicon vs. Bosera CMSK Industrial |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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