Correlation Between Shenzhen MYS and Ningbo GQY
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By analyzing existing cross correlation between Shenzhen MYS Environmental and Ningbo GQY Video, you can compare the effects of market volatilities on Shenzhen MYS and Ningbo GQY 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 Ningbo GQY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Ningbo GQY.
Diversification Opportunities for Shenzhen MYS and Ningbo GQY
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Ningbo is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and Ningbo GQY Video in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo GQY Video 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 Ningbo GQY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo GQY Video has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and Ningbo GQY go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Ningbo GQY
Assuming the 90 days trading horizon Shenzhen MYS is expected to generate 1.55 times less return on investment than Ningbo GQY. But when comparing it to its historical volatility, Shenzhen MYS Environmental is 1.47 times less risky than Ningbo GQY. It trades about 0.26 of its potential returns per unit of risk. Ningbo GQY Video is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 367.00 in Ningbo GQY Video on September 12, 2024 and sell it today you would earn a total of 438.00 from holding Ningbo GQY Video or generate 119.35% 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. Ningbo GQY Video
Performance |
| Timeline |
| Shenzhen MYS Environ |
| Ningbo GQY Video |
Shenzhen MYS and Ningbo GQY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and Ningbo GQY
The main advantage of trading using opposite Shenzhen MYS and Ningbo GQY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, Ningbo GQY 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 Ningbo GQY will offset losses from the drop in Ningbo GQY's long position.| Shenzhen MYS vs. Ligao Foods CoLtd | Shenzhen MYS vs. Muyuan Foodstuff Co | Shenzhen MYS vs. Youyou Foods Co | Shenzhen MYS vs. Leyard Optoelectronic |
| Ningbo GQY vs. Cultural Investment Holdings | Ningbo GQY vs. CICC Fund Management | Ningbo GQY vs. Henan Shuanghui Investment | Ningbo GQY vs. Zhongrun Resources Investment |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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