Correlation Between Shenzhen Noposion and Sublime China
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Sublime China Information, you can compare the effects of market volatilities on Shenzhen Noposion and Sublime China 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 Sublime China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Sublime China.
Diversification Opportunities for Shenzhen Noposion and Sublime China
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Sublime is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical and Sublime China Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sublime China Information 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 Sublime China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sublime China Information has no effect on the direction of Shenzhen Noposion i.e., Shenzhen Noposion and Sublime China go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Sublime China
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to under-perform the Sublime China. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Noposion Agrochemicals is 1.49 times less risky than Sublime China. The stock trades about -0.11 of its potential returns per unit of risk. The Sublime China Information is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 6,175 in Sublime China Information on October 14, 2024 and sell it today you would lose (280.00) from holding Sublime China Information or give up 4.53% 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. Sublime China Information
Performance |
| Timeline |
| Shenzhen Noposion |
| Sublime China Information |
Shenzhen Noposion and Sublime China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Sublime China
The main advantage of trading using opposite Shenzhen Noposion and Sublime China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion position performs unexpectedly, Sublime China 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 Sublime China will offset losses from the drop in Sublime China's long position.| Shenzhen Noposion vs. Beijing Sanyuan Foods | Shenzhen Noposion vs. Ligao Foods CoLtd | Shenzhen Noposion vs. Guangdong Wens Foodstuff | Shenzhen Noposion vs. Wuhan Hvsen Biotechnology |
| Sublime China vs. Shenzhen Noposion Agrochemicals | Sublime China vs. Liaoning Dingjide Petrochemical | Sublime China vs. Guangzhou Dongfang Hotel | Sublime China vs. Guangzhou Seagull Kitchen |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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