Correlation Between Shenzhen Noposion and Bank of Communications
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Bank of Communications, you can compare the effects of market volatilities on Shenzhen Noposion and Bank of Communications 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 Bank of Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Bank of Communications.
Diversification Opportunities for Shenzhen Noposion and Bank of Communications
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Bank is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical and Bank of Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Communications 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 Bank of Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Communications has no effect on the direction of Shenzhen Noposion i.e., Shenzhen Noposion and Bank of Communications go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Bank of Communications
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to generate 1.95 times more return on investment than Bank of Communications. However, Shenzhen Noposion is 1.95 times more volatile than Bank of Communications. It trades about 0.06 of its potential returns per unit of risk. Bank of Communications is currently generating about 0.08 per unit of risk. If you would invest 538.00 in Shenzhen Noposion Agrochemicals on October 20, 2024 and sell it today you would earn a total of 463.00 from holding Shenzhen Noposion Agrochemicals or generate 86.06% 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. Bank of Communications
Performance |
| Timeline |
| Shenzhen Noposion |
| Bank of Communications |
Shenzhen Noposion and Bank of Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Bank of Communications
The main advantage of trading using opposite Shenzhen Noposion and Bank of Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion position performs unexpectedly, Bank of Communications 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 Bank of Communications will offset losses from the drop in Bank of Communications' long position.| Shenzhen Noposion vs. Tongyu Communication | Shenzhen Noposion vs. Sinomach Automobile Co | Shenzhen Noposion vs. Shuhua Sports Co | Shenzhen Noposion vs. Hengdian Entertainment 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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