Correlation Between Shenzhen MYS and Xiamen Jihong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen MYS Environmental and Xiamen Jihong Package, you can compare the effects of market volatilities on Shenzhen MYS and Xiamen Jihong 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 Xiamen Jihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Xiamen Jihong.
Diversification Opportunities for Shenzhen MYS and Xiamen Jihong
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Xiamen is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and Xiamen Jihong Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Jihong Package 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 Xiamen Jihong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Jihong Package has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and Xiamen Jihong go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Xiamen Jihong
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 0.68 times more return on investment than Xiamen Jihong. However, Shenzhen MYS Environmental is 1.48 times less risky than Xiamen Jihong. It trades about 0.04 of its potential returns per unit of risk. Xiamen Jihong Package is currently generating about 0.02 per unit of risk. If you would invest 285.00 in Shenzhen MYS Environmental on September 6, 2024 and sell it today you would earn a total of 88.00 from holding Shenzhen MYS Environmental or generate 30.88% 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. Xiamen Jihong Package
Performance |
| Timeline |
| Shenzhen MYS Environ |
| Xiamen Jihong Package |
Shenzhen MYS and Xiamen Jihong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and Xiamen Jihong
The main advantage of trading using opposite Shenzhen MYS and Xiamen Jihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, Xiamen Jihong 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 Xiamen Jihong will offset losses from the drop in Xiamen Jihong's long position.| Shenzhen MYS vs. Rising Nonferrous Metals | Shenzhen MYS vs. Western Metal Materials | Shenzhen MYS vs. HeNan Splendor Science | Shenzhen MYS vs. Ye Chiu Metal |
| Xiamen Jihong vs. Zijin Mining Group | Xiamen Jihong vs. Wanhua Chemical Group | Xiamen Jihong vs. Baoshan Iron Steel | Xiamen Jihong vs. Rongsheng Petrochemical Co |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |