Correlation Between Shenzhen MYS and Jizhong Energy
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By analyzing existing cross correlation between Shenzhen MYS Environmental and Jizhong Energy Resources, you can compare the effects of market volatilities on Shenzhen MYS and Jizhong Energy 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 Jizhong Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Jizhong Energy.
Diversification Opportunities for Shenzhen MYS and Jizhong Energy
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Jizhong is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and Jizhong Energy Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jizhong Energy Resources 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 Jizhong Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jizhong Energy Resources has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and Jizhong Energy go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Jizhong Energy
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 2.14 times more return on investment than Jizhong Energy. However, Shenzhen MYS is 2.14 times more volatile than Jizhong Energy Resources. It trades about -0.06 of its potential returns per unit of risk. Jizhong Energy Resources is currently generating about -0.15 per unit of risk. If you would invest 354.00 in Shenzhen MYS Environmental on November 3, 2024 and sell it today you would lose (14.00) from holding Shenzhen MYS Environmental or give up 3.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MYS Environmental vs. Jizhong Energy Resources
Performance |
| Timeline |
| Shenzhen MYS Environ |
| Jizhong Energy Resources |
Shenzhen MYS and Jizhong Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and Jizhong Energy
The main advantage of trading using opposite Shenzhen MYS and Jizhong Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, Jizhong Energy 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 Jizhong Energy will offset losses from the drop in Jizhong Energy'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 |
| Jizhong Energy vs. Qtone Education Group | Jizhong Energy vs. Southern PublishingMedia Co | Jizhong Energy vs. China Publishing Media | Jizhong Energy vs. CareRay Digital 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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