Correlation Between Shenzhen Noposion and Yunnan Jianzhijia
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Yunnan Jianzhijia Health Chain, you can compare the effects of market volatilities on Shenzhen Noposion and Yunnan Jianzhijia 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 Yunnan Jianzhijia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Yunnan Jianzhijia.
Diversification Opportunities for Shenzhen Noposion and Yunnan Jianzhijia
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Yunnan is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical and Yunnan Jianzhijia Health Chain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Jianzhijia 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 Yunnan Jianzhijia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Jianzhijia has no effect on the direction of Shenzhen Noposion i.e., Shenzhen Noposion and Yunnan Jianzhijia go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Yunnan Jianzhijia
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to generate 0.86 times more return on investment than Yunnan Jianzhijia. However, Shenzhen Noposion Agrochemicals is 1.17 times less risky than Yunnan Jianzhijia. It trades about 0.06 of its potential returns per unit of risk. Yunnan Jianzhijia Health Chain is currently generating about -0.04 per unit of risk. If you would invest 535.00 in Shenzhen Noposion Agrochemicals on September 3, 2024 and sell it today you would earn a total of 442.00 from holding Shenzhen Noposion Agrochemicals or generate 82.62% 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. Yunnan Jianzhijia Health Chain
Performance |
| Timeline |
| Shenzhen Noposion |
| Yunnan Jianzhijia |
Shenzhen Noposion and Yunnan Jianzhijia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Yunnan Jianzhijia
The main advantage of trading using opposite Shenzhen Noposion and Yunnan Jianzhijia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion position performs unexpectedly, Yunnan Jianzhijia 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 Yunnan Jianzhijia will offset losses from the drop in Yunnan Jianzhijia's long position.| Shenzhen Noposion vs. Zijin Mining Group | Shenzhen Noposion vs. Baoshan Iron Steel | Shenzhen Noposion vs. Rongsheng Petrochemical Co | Shenzhen Noposion vs. Hoshine Silicon Ind |
| Yunnan Jianzhijia vs. Beijing Wantai Biological | Yunnan Jianzhijia vs. Aluminum Corp of | Yunnan Jianzhijia vs. COL Digital Publishing | Yunnan Jianzhijia vs. Shaanxi Meineng Clean |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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