Correlation Between Shenzhen MYS and Shenzhen Bingchuan
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By analyzing existing cross correlation between Shenzhen MYS Environmental and Shenzhen Bingchuan Network, you can compare the effects of market volatilities on Shenzhen MYS and Shenzhen Bingchuan 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 Shenzhen Bingchuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Shenzhen Bingchuan.
Diversification Opportunities for Shenzhen MYS and Shenzhen Bingchuan
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Shenzhen is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and Shenzhen Bingchuan Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Bingchuan 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 Shenzhen Bingchuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Bingchuan has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and Shenzhen Bingchuan go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Shenzhen Bingchuan
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 0.75 times more return on investment than Shenzhen Bingchuan. However, Shenzhen MYS Environmental is 1.34 times less risky than Shenzhen Bingchuan. It trades about 0.16 of its potential returns per unit of risk. Shenzhen Bingchuan Network is currently generating about 0.09 per unit of risk. If you would invest 192.00 in Shenzhen MYS Environmental on October 22, 2024 and sell it today you would earn a total of 146.00 from holding Shenzhen MYS Environmental or generate 76.04% 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. Shenzhen Bingchuan Network
Performance |
| Timeline |
| Shenzhen MYS Environ |
| Shenzhen Bingchuan |
Shenzhen MYS and Shenzhen Bingchuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and Shenzhen Bingchuan
The main advantage of trading using opposite Shenzhen MYS and Shenzhen Bingchuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, Shenzhen Bingchuan 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 Shenzhen Bingchuan will offset losses from the drop in Shenzhen Bingchuan's long position.| Shenzhen MYS vs. Shandong Longquan Pipeline | Shenzhen MYS vs. Huizhou Speed Wireless | Shenzhen MYS vs. Jilin Chemical Fibre | Shenzhen MYS vs. Lander Sports Development |
| Shenzhen Bingchuan vs. Rising Nonferrous Metals | Shenzhen Bingchuan vs. Jahen Household Products | Shenzhen Bingchuan vs. Ye Chiu Metal | Shenzhen Bingchuan vs. Jiangsu Financial Leasing |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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