Correlation Between Shenzhen Noposion and China World
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and China World Trade, you can compare the effects of market volatilities on Shenzhen Noposion and China World 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 China World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and China World.
Diversification Opportunities for Shenzhen Noposion and China World
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shenzhen and China is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical and China World Trade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China World Trade 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 China World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China World Trade has no effect on the direction of Shenzhen Noposion i.e., Shenzhen Noposion and China World go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and China World
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to generate 1.2 times more return on investment than China World. However, Shenzhen Noposion is 1.2 times more volatile than China World Trade. It trades about 0.2 of its potential returns per unit of risk. China World Trade is currently generating about 0.06 per unit of risk. If you would invest 754.00 in Shenzhen Noposion Agrochemicals on September 5, 2024 and sell it today you would earn a total of 261.00 from holding Shenzhen Noposion Agrochemicals or generate 34.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. China World Trade
Performance |
| Timeline |
| Shenzhen Noposion |
| China World Trade |
Shenzhen Noposion and China World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and China World
The main advantage of trading using opposite Shenzhen Noposion and China World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion position performs unexpectedly, China World 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 China World will offset losses from the drop in China World's long position.| Shenzhen Noposion vs. Zijin Mining Group | Shenzhen Noposion vs. Wanhua Chemical Group | Shenzhen Noposion vs. Baoshan Iron Steel | Shenzhen Noposion vs. Rongsheng Petrochemical Co |
| China World vs. Shenzhen Noposion Agrochemicals | China World vs. Offcn Education Technology | China World vs. Heilongjiang Publishing Media | China World vs. Shuhua Sports Co |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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