Correlation Between Shenzhen MYS and City Development
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By analyzing existing cross correlation between Shenzhen MYS Environmental and City Development Environment, you can compare the effects of market volatilities on Shenzhen MYS and City Development 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 City Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and City Development.
Diversification Opportunities for Shenzhen MYS and City Development
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and City is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and City Development Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City Development Env 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 City Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City Development Env has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and City Development go up and down completely randomly.
Pair Corralation between Shenzhen MYS and City Development
Assuming the 90 days trading horizon Shenzhen MYS is expected to generate 1.04 times less return on investment than City Development. In addition to that, Shenzhen MYS is 1.07 times more volatile than City Development Environment. It trades about 0.04 of its total potential returns per unit of risk. City Development Environment is currently generating about 0.05 per unit of volatility. If you would invest 945.00 in City Development Environment on August 28, 2024 and sell it today you would earn a total of 393.00 from holding City Development Environment or generate 41.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MYS Environmental vs. City Development Environment
Performance |
| Timeline |
| Shenzhen MYS Environ |
| City Development Env |
Shenzhen MYS and City Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and City Development
The main advantage of trading using opposite Shenzhen MYS and City Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, City Development 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 City Development will offset losses from the drop in City Development's long position.| Shenzhen MYS vs. Gansu Yasheng Industrial | Shenzhen MYS vs. Integrated Electronic Systems | Shenzhen MYS vs. Chengtun Mining Group | Shenzhen MYS vs. Zhejiang Yayi Metal |
| City Development vs. Zijin Mining Group | City Development vs. Wanhua Chemical Group | City Development vs. Baoshan Iron Steel | City Development vs. Shandong Gold Mining |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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