Correlation Between Shenzhen MYS and Shanghai Yaoji
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By analyzing existing cross correlation between Shenzhen MYS Environmental and Shanghai Yaoji Playing, you can compare the effects of market volatilities on Shenzhen MYS and Shanghai Yaoji 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 Shanghai Yaoji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Shanghai Yaoji.
Diversification Opportunities for Shenzhen MYS and Shanghai Yaoji
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Shanghai is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and Shanghai Yaoji Playing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yaoji Playing 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 Shanghai Yaoji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yaoji Playing has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and Shanghai Yaoji go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Shanghai Yaoji
Assuming the 90 days trading horizon Shenzhen MYS is expected to generate 1.29 times less return on investment than Shanghai Yaoji. But when comparing it to its historical volatility, Shenzhen MYS Environmental is 1.34 times less risky than Shanghai Yaoji. It trades about 0.05 of its potential returns per unit of risk. Shanghai Yaoji Playing is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,195 in Shanghai Yaoji Playing on August 25, 2024 and sell it today you would earn a total of 846.00 from holding Shanghai Yaoji Playing or generate 38.54% 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. Shanghai Yaoji Playing
Performance |
| Timeline |
| Shenzhen MYS Environ |
| Shanghai Yaoji Playing |
Shenzhen MYS and Shanghai Yaoji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and Shanghai Yaoji
The main advantage of trading using opposite Shenzhen MYS and Shanghai Yaoji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, Shanghai Yaoji 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 Shanghai Yaoji will offset losses from the drop in Shanghai Yaoji'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 |
| Shanghai Yaoji vs. Shenzhen MYS Environmental | Shanghai Yaoji vs. AVIC Fund Management | Shanghai Yaoji vs. Shenzhen Bingchuan Network | Shanghai Yaoji vs. Penghua Shenzhen Energy |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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