Correlation Between Shenzhen MYS and Songz Automobile
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By analyzing existing cross correlation between Shenzhen MYS Environmental and Songz Automobile Air, you can compare the effects of market volatilities on Shenzhen MYS and Songz Automobile 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 Songz Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Songz Automobile.
Diversification Opportunities for Shenzhen MYS and Songz Automobile
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Songz is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and Songz Automobile Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Songz Automobile Air 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 Songz Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Songz Automobile Air has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and Songz Automobile go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Songz Automobile
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 1.59 times more return on investment than Songz Automobile. However, Shenzhen MYS is 1.59 times more volatile than Songz Automobile Air. It trades about 0.02 of its potential returns per unit of risk. Songz Automobile Air is currently generating about 0.02 per unit of risk. If you would invest 315.00 in Shenzhen MYS Environmental on October 14, 2024 and sell it today you would earn a total of 0.00 from holding Shenzhen MYS Environmental or generate 0.0% 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. Songz Automobile Air
Performance |
| Timeline |
| Shenzhen MYS Environ |
| Songz Automobile Air |
Shenzhen MYS and Songz Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and Songz Automobile
The main advantage of trading using opposite Shenzhen MYS and Songz Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, Songz Automobile 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 Songz Automobile will offset losses from the drop in Songz Automobile's long position.| Shenzhen MYS vs. Songz Automobile Air | Shenzhen MYS vs. Gansu Jiu Steel | Shenzhen MYS vs. Haima Automobile Group | Shenzhen MYS vs. Telling Telecommunication Holding |
| Songz Automobile vs. Anyang Iron Steel | Songz Automobile vs. Elite Color Environmental | Songz Automobile vs. TongFu Microelectronics Co | Songz Automobile vs. Shenzhen MYS Environmental |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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