Correlation Between Shenzhen MYS and Zhejiang JIULI
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By analyzing existing cross correlation between Shenzhen MYS Environmental and Zhejiang JIULI Hi tech, you can compare the effects of market volatilities on Shenzhen MYS and Zhejiang JIULI 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 Zhejiang JIULI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Zhejiang JIULI.
Diversification Opportunities for Shenzhen MYS and Zhejiang JIULI
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Zhejiang is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and Zhejiang JIULI Hi tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang JIULI Hi 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 Zhejiang JIULI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang JIULI Hi has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and Zhejiang JIULI go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Zhejiang JIULI
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 2.15 times more return on investment than Zhejiang JIULI. However, Shenzhen MYS is 2.15 times more volatile than Zhejiang JIULI Hi tech. It trades about 0.24 of its potential returns per unit of risk. Zhejiang JIULI Hi tech is currently generating about 0.18 per unit of risk. If you would invest 309.00 in Shenzhen MYS Environmental on September 3, 2024 and sell it today you would earn a total of 66.00 from holding Shenzhen MYS Environmental or generate 21.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MYS Environmental vs. Zhejiang JIULI Hi tech
Performance |
| Timeline |
| Shenzhen MYS Environ |
| Zhejiang JIULI Hi |
Shenzhen MYS and Zhejiang JIULI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and Zhejiang JIULI
The main advantage of trading using opposite Shenzhen MYS and Zhejiang JIULI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, Zhejiang JIULI 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 Zhejiang JIULI will offset losses from the drop in Zhejiang JIULI's long position.| Shenzhen MYS vs. Guangdong Liantai Environmental | Shenzhen MYS vs. Harvest Fund Management | Shenzhen MYS vs. Sanbo Hospital Management | Shenzhen MYS vs. Tianjin Capital Environmental |
| Zhejiang JIULI vs. Zijin Mining Group | Zhejiang JIULI vs. Baoshan Iron Steel | Zhejiang JIULI vs. Rongsheng Petrochemical Co | Zhejiang JIULI vs. Hoshine Silicon Ind |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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