Correlation Between Shenzhen Noposion and Shanghai Material
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Shanghai Material Trading, you can compare the effects of market volatilities on Shenzhen Noposion and Shanghai Material 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 Shanghai Material. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Shanghai Material.
Diversification Opportunities for Shenzhen Noposion and Shanghai Material
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Shanghai is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical and Shanghai Material Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Material Trading 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 Shanghai Material. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Material Trading has no effect on the direction of Shenzhen Noposion i.e., Shenzhen Noposion and Shanghai Material go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Shanghai Material
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to generate 0.74 times more return on investment than Shanghai Material. However, Shenzhen Noposion Agrochemicals is 1.36 times less risky than Shanghai Material. It trades about 0.05 of its potential returns per unit of risk. Shanghai Material Trading is currently generating about -0.01 per unit of risk. If you would invest 730.00 in Shenzhen Noposion Agrochemicals on October 12, 2024 and sell it today you would earn a total of 286.00 from holding Shenzhen Noposion Agrochemicals or generate 39.18% 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. Shanghai Material Trading
Performance |
| Timeline |
| Shenzhen Noposion |
| Shanghai Material Trading |
Shenzhen Noposion and Shanghai Material Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Shanghai Material
The main advantage of trading using opposite Shenzhen Noposion and Shanghai Material positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion position performs unexpectedly, Shanghai Material 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 Shanghai Material will offset losses from the drop in Shanghai Material's long position.| Shenzhen Noposion vs. Guizhou Chanhen Chemical | Shenzhen Noposion vs. Guangdong Transtek Medical | Shenzhen Noposion vs. Liuzhou Chemical Industry | Shenzhen Noposion vs. Eyebright Medical Technology |
| Shanghai Material vs. Ping An Insurance | Shanghai Material vs. Shenzhen Noposion Agrochemicals | Shanghai Material vs. Porton Fine Chemicals | Shanghai Material vs. Beijing Bewinner Communications |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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