Correlation Between Shenzhen MYS and China Reform
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By analyzing existing cross correlation between Shenzhen MYS Environmental and China Reform Health, you can compare the effects of market volatilities on Shenzhen MYS and China Reform 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 MYS with a short position of China Reform. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and China Reform.
Diversification Opportunities for Shenzhen MYS and China Reform
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and China is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and China Reform Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Reform Health and Shenzhen MYS 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 MYS Environmental are associated (or correlated) with China Reform. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Reform Health has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and China Reform go up and down completely randomly.
Pair Corralation between Shenzhen MYS and China Reform
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 0.91 times more return on investment than China Reform. However, Shenzhen MYS Environmental is 1.1 times less risky than China Reform. It trades about 0.24 of its potential returns per unit of risk. China Reform Health is currently generating about -0.02 per unit of risk. If you would invest 337.00 in Shenzhen MYS Environmental on September 14, 2024 and sell it today you would earn a total of 77.00 from holding Shenzhen MYS Environmental or generate 22.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MYS Environmental vs. China Reform Health
Performance |
| Timeline |
| Shenzhen MYS Environ |
| China Reform Health |
Shenzhen MYS and China Reform Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and China Reform
The main advantage of trading using opposite Shenzhen MYS and China Reform positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, China Reform 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 China Reform will offset losses from the drop in China Reform's long position.| Shenzhen MYS vs. Zijin Mining Group | Shenzhen MYS vs. Wanhua Chemical Group | Shenzhen MYS vs. Baoshan Iron Steel | Shenzhen MYS vs. Shandong Gold Mining |
| China Reform vs. Guangzhou Boji Medical | China Reform vs. Shenzhen Glory Medical | China Reform vs. Changchun BCHT Biotechnology | China Reform vs. Beijing Wandong Medical |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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