Correlation Between Shenzhen MYS and China Resources
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By analyzing existing cross correlation between Shenzhen MYS Environmental and China Resources Boya, you can compare the effects of market volatilities on Shenzhen MYS and China Resources 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 China Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and China Resources.
Diversification Opportunities for Shenzhen MYS and China Resources
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shenzhen and China is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and China Resources Boya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Resources Boya 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 China Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Resources Boya has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and China Resources go up and down completely randomly.
Pair Corralation between Shenzhen MYS and China Resources
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to under-perform the China Resources. In addition to that, Shenzhen MYS is 3.48 times more volatile than China Resources Boya. It trades about -0.06 of its total potential returns per unit of risk. China Resources Boya is currently generating about -0.14 per unit of volatility. If you would invest 2,967 in China Resources Boya on November 3, 2024 and sell it today you would lose (67.00) from holding China Resources Boya or give up 2.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MYS Environmental vs. China Resources Boya
Performance |
| Timeline |
| Shenzhen MYS Environ |
| China Resources Boya |
Shenzhen MYS and China Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and China Resources
The main advantage of trading using opposite Shenzhen MYS and China Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, China Resources 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 China Resources will offset losses from the drop in China Resources' 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 |
| China Resources vs. Yan Tai Shuang | China Resources vs. Jiahe Foods Industry | China Resources vs. Fujian Longzhou Transportation | China Resources vs. Dazhong Transportation Group |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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