Correlation Between Shenzhen MYS and Hubei Yingtong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen MYS Environmental and Hubei Yingtong Telecommunication, you can compare the effects of market volatilities on Shenzhen MYS and Hubei Yingtong 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 Hubei Yingtong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Hubei Yingtong.
Diversification Opportunities for Shenzhen MYS and Hubei Yingtong
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Hubei is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and Hubei Yingtong Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Yingtong Telec 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 Hubei Yingtong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Yingtong Telec has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and Hubei Yingtong go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Hubei Yingtong
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 1.23 times more return on investment than Hubei Yingtong. However, Shenzhen MYS is 1.23 times more volatile than Hubei Yingtong Telecommunication. It trades about 0.22 of its potential returns per unit of risk. Hubei Yingtong Telecommunication is currently generating about 0.01 per unit of risk. If you would invest 312.00 in Shenzhen MYS Environmental on August 30, 2024 and sell it today you would earn a total of 63.00 from holding Shenzhen MYS Environmental or generate 20.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shenzhen MYS Environmental vs. Hubei Yingtong Telecommunicati
Performance |
| Timeline |
| Shenzhen MYS Environ |
| Hubei Yingtong Telec |
Shenzhen MYS and Hubei Yingtong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and Hubei Yingtong
The main advantage of trading using opposite Shenzhen MYS and Hubei Yingtong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, Hubei Yingtong 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 Hubei Yingtong will offset losses from the drop in Hubei Yingtong'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 |
| Hubei Yingtong vs. Agricultural Bank of | Hubei Yingtong vs. Industrial and Commercial | Hubei Yingtong vs. Bank of China | Hubei Yingtong vs. China Construction Bank |
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.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |