Correlation Between Shenzhen MYS and GRG Banking
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By analyzing existing cross correlation between Shenzhen MYS Environmental and GRG Banking Equipment, you can compare the effects of market volatilities on Shenzhen MYS and GRG Banking 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 GRG Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and GRG Banking.
Diversification Opportunities for Shenzhen MYS and GRG Banking
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and GRG is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and GRG Banking Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRG Banking Equipment 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 GRG Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRG Banking Equipment has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and GRG Banking go up and down completely randomly.
Pair Corralation between Shenzhen MYS and GRG Banking
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 1.56 times more return on investment than GRG Banking. However, Shenzhen MYS is 1.56 times more volatile than GRG Banking Equipment. It trades about -0.06 of its potential returns per unit of risk. GRG Banking Equipment is currently generating about -0.19 per unit of risk. If you would invest 356.00 in Shenzhen MYS Environmental on October 24, 2024 and sell it today you would lose (15.00) from holding Shenzhen MYS Environmental or give up 4.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MYS Environmental vs. GRG Banking Equipment
Performance |
| Timeline |
| Shenzhen MYS Environ |
| GRG Banking Equipment |
Shenzhen MYS and GRG Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and GRG Banking
The main advantage of trading using opposite Shenzhen MYS and GRG Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, GRG Banking 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 GRG Banking will offset losses from the drop in GRG Banking's long position.| Shenzhen MYS vs. Runjian Communication Co | Shenzhen MYS vs. FSPG Hi Tech Co | Shenzhen MYS vs. Qingdao Choho Industrial | Shenzhen MYS vs. China Minmetals Rare |
| GRG Banking vs. Runjian Communication Co | GRG Banking vs. FSPG Hi Tech Co | GRG Banking vs. Tianjin Hi Tech Development | GRG Banking vs. JS Corrugating Machinery |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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