Correlation Between Shenzhen Noposion and Tianjin Silvery
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Tianjin Silvery Dragon, you can compare the effects of market volatilities on Shenzhen Noposion and Tianjin Silvery 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 Tianjin Silvery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Tianjin Silvery.
Diversification Opportunities for Shenzhen Noposion and Tianjin Silvery
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Tianjin is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical and Tianjin Silvery Dragon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Silvery Dragon 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 Tianjin Silvery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Silvery Dragon has no effect on the direction of Shenzhen Noposion i.e., Shenzhen Noposion and Tianjin Silvery go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Tianjin Silvery
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to under-perform the Tianjin Silvery. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Noposion Agrochemicals is 1.28 times less risky than Tianjin Silvery. The stock trades about -0.14 of its potential returns per unit of risk. The Tianjin Silvery Dragon is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 611.00 in Tianjin Silvery Dragon on October 12, 2024 and sell it today you would earn a total of 19.00 from holding Tianjin Silvery Dragon or generate 3.11% 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. Tianjin Silvery Dragon
Performance |
| Timeline |
| Shenzhen Noposion |
| Tianjin Silvery Dragon |
Shenzhen Noposion and Tianjin Silvery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Tianjin Silvery
The main advantage of trading using opposite Shenzhen Noposion and Tianjin Silvery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion position performs unexpectedly, Tianjin Silvery 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 Tianjin Silvery will offset losses from the drop in Tianjin Silvery'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 |
| Tianjin Silvery vs. Tonghua Grape Wine | Tianjin Silvery vs. Shenzhen Noposion Agrochemicals | Tianjin Silvery vs. Tibet Huayu Mining | Tianjin Silvery vs. Ye Chiu Metal |
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 Stocks Directory module to find actively traded stocks across global markets.
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