Correlation Between Shenzhen Noposion and Shanghai CEO
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Shanghai CEO Environmental, you can compare the effects of market volatilities on Shenzhen Noposion and Shanghai CEO 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 CEO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Shanghai CEO.
Diversification Opportunities for Shenzhen Noposion and Shanghai CEO
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and Shanghai is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical and Shanghai CEO Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai CEO Environ 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 CEO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai CEO Environ has no effect on the direction of Shenzhen Noposion i.e., Shenzhen Noposion and Shanghai CEO go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Shanghai CEO
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to generate 0.9 times more return on investment than Shanghai CEO. However, Shenzhen Noposion Agrochemicals is 1.11 times less risky than Shanghai CEO. It trades about 0.04 of its potential returns per unit of risk. Shanghai CEO Environmental is currently generating about -0.04 per unit of risk. If you would invest 791.00 in Shenzhen Noposion Agrochemicals on October 11, 2024 and sell it today you would earn a total of 203.00 from holding Shenzhen Noposion Agrochemicals or generate 25.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. Shanghai CEO Environmental
Performance |
| Timeline |
| Shenzhen Noposion |
| Shanghai CEO Environ |
Shenzhen Noposion and Shanghai CEO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Shanghai CEO
The main advantage of trading using opposite Shenzhen Noposion and Shanghai CEO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion position performs unexpectedly, Shanghai CEO 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 CEO will offset losses from the drop in Shanghai CEO's long position.| Shenzhen Noposion vs. Vanfund Urban Investment | Shenzhen Noposion vs. Lecron Energy Saving | Shenzhen Noposion vs. Tieling Newcity Investment | Shenzhen Noposion vs. Jiangsu Financial Leasing |
| Shanghai CEO vs. China Life Insurance | Shanghai CEO vs. Beijing Jiaman Dress | Shanghai CEO vs. Western Metal Materials | Shanghai CEO vs. Beijing HuaYuanYiTong Thermal |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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