Correlation Between Shenzhen MYS and Guangzhou Hangxin
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By analyzing existing cross correlation between Shenzhen MYS Environmental and Guangzhou Hangxin Aviation, you can compare the effects of market volatilities on Shenzhen MYS and Guangzhou Hangxin 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 Guangzhou Hangxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Guangzhou Hangxin.
Diversification Opportunities for Shenzhen MYS and Guangzhou Hangxin
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and Guangzhou is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and Guangzhou Hangxin Aviation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Hangxin 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 Guangzhou Hangxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Hangxin has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and Guangzhou Hangxin go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Guangzhou Hangxin
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 0.87 times more return on investment than Guangzhou Hangxin. However, Shenzhen MYS Environmental is 1.15 times less risky than Guangzhou Hangxin. It trades about -0.06 of its potential returns per unit of risk. Guangzhou Hangxin Aviation is currently generating about -0.2 per unit of risk. If you would invest 354.00 in Shenzhen MYS Environmental on November 3, 2024 and sell it today you would lose (14.00) from holding Shenzhen MYS Environmental or give up 3.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MYS Environmental vs. Guangzhou Hangxin Aviation
Performance |
| Timeline |
| Shenzhen MYS Environ |
| Guangzhou Hangxin |
Shenzhen MYS and Guangzhou Hangxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and Guangzhou Hangxin
The main advantage of trading using opposite Shenzhen MYS and Guangzhou Hangxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, Guangzhou Hangxin 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 Guangzhou Hangxin will offset losses from the drop in Guangzhou Hangxin'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 |
| Guangzhou Hangxin vs. HeNan Splendor Science | Guangzhou Hangxin vs. Elite Color Environmental | Guangzhou Hangxin vs. GRG Banking Equipment | Guangzhou Hangxin vs. Shenwu Energy Saving |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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