Correlation Between Shenzhen MYS and Tianjin LVYIN
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen MYS Environmental and Tianjin LVYIN Landscape, you can compare the effects of market volatilities on Shenzhen MYS and Tianjin LVYIN 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 Tianjin LVYIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Tianjin LVYIN.
Diversification Opportunities for Shenzhen MYS and Tianjin LVYIN
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Tianjin is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and Tianjin LVYIN Landscape in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin LVYIN Landscape 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 Tianjin LVYIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin LVYIN Landscape has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and Tianjin LVYIN go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Tianjin LVYIN
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to under-perform the Tianjin LVYIN. In addition to that, Shenzhen MYS is 1.07 times more volatile than Tianjin LVYIN Landscape. It trades about -0.18 of its total potential returns per unit of risk. Tianjin LVYIN Landscape is currently generating about -0.03 per unit of volatility. If you would invest 736.00 in Tianjin LVYIN Landscape on September 25, 2024 and sell it today you would lose (23.00) from holding Tianjin LVYIN Landscape or give up 3.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Shenzhen MYS Environmental vs. Tianjin LVYIN Landscape
Performance |
| Timeline |
| Shenzhen MYS Environ |
| Tianjin LVYIN Landscape |
Shenzhen MYS and Tianjin LVYIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and Tianjin LVYIN
The main advantage of trading using opposite Shenzhen MYS and Tianjin LVYIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, Tianjin LVYIN 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 Tianjin LVYIN will offset losses from the drop in Tianjin LVYIN'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 |
| Tianjin LVYIN vs. Ming Yang Smart | Tianjin LVYIN vs. 159681 | Tianjin LVYIN vs. 159005 | Tianjin LVYIN vs. Loctek Ergonomic Technology |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |