Correlation Between Shenzhen Noposion and Luoyang Glass
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Luoyang Glass, you can compare the effects of market volatilities on Shenzhen Noposion and Luoyang Glass 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 Luoyang Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Luoyang Glass.
Diversification Opportunities for Shenzhen Noposion and Luoyang Glass
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Luoyang is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical and Luoyang Glass in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luoyang Glass 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 Luoyang Glass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luoyang Glass has no effect on the direction of Shenzhen Noposion i.e., Shenzhen Noposion and Luoyang Glass go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Luoyang Glass
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to generate 1.46 times more return on investment than Luoyang Glass. However, Shenzhen Noposion is 1.46 times more volatile than Luoyang Glass. It trades about 0.35 of its potential returns per unit of risk. Luoyang Glass is currently generating about 0.01 per unit of risk. If you would invest 962.00 in Shenzhen Noposion Agrochemicals on September 14, 2024 and sell it today you would earn a total of 211.00 from holding Shenzhen Noposion Agrochemicals or generate 21.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. Luoyang Glass
Performance |
| Timeline |
| Shenzhen Noposion |
| Luoyang Glass |
Shenzhen Noposion and Luoyang Glass Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Luoyang Glass
The main advantage of trading using opposite Shenzhen Noposion and Luoyang Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion position performs unexpectedly, Luoyang Glass 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 Luoyang Glass will offset losses from the drop in Luoyang Glass' long position.| Shenzhen Noposion vs. Gem Year Industrial Co | Shenzhen Noposion vs. Xinjiang Baodi Mining | Shenzhen Noposion vs. Gansu Yasheng Industrial | Shenzhen Noposion vs. Yunnan Xiyi Industrial |
| Luoyang Glass vs. Duzhe Publishing Media | Luoyang Glass vs. Shandong Publishing Media | Luoyang Glass vs. Shenzhen Noposion Agrochemicals | Luoyang Glass vs. Will Semiconductor 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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