Correlation Between Shenzhen MYS and Hangzhou Guotai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen MYS Environmental and Hangzhou Guotai Environmental, you can compare the effects of market volatilities on Shenzhen MYS and Hangzhou Guotai 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 Hangzhou Guotai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Hangzhou Guotai.
Diversification Opportunities for Shenzhen MYS and Hangzhou Guotai
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenzhen and Hangzhou is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and Hangzhou Guotai Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Guotai Envi 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 Hangzhou Guotai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Guotai Envi has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and Hangzhou Guotai go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Hangzhou Guotai
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 0.69 times more return on investment than Hangzhou Guotai. However, Shenzhen MYS Environmental is 1.44 times less risky than Hangzhou Guotai. It trades about 0.02 of its potential returns per unit of risk. Hangzhou Guotai Environmental is currently generating about 0.01 per unit of risk. If you would invest 302.00 in Shenzhen MYS Environmental on October 14, 2024 and sell it today you would earn a total of 13.00 from holding Shenzhen MYS Environmental or generate 4.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.38% |
| Values | Daily Returns |
Shenzhen MYS Environmental vs. Hangzhou Guotai Environmental
Performance |
| Timeline |
| Shenzhen MYS Environ |
| Hangzhou Guotai Envi |
Shenzhen MYS and Hangzhou Guotai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and Hangzhou Guotai
The main advantage of trading using opposite Shenzhen MYS and Hangzhou Guotai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, Hangzhou Guotai 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 Hangzhou Guotai will offset losses from the drop in Hangzhou Guotai's long position.| Shenzhen MYS vs. Songz Automobile Air | Shenzhen MYS vs. Gansu Jiu Steel | Shenzhen MYS vs. Haima Automobile Group | Shenzhen MYS vs. Telling Telecommunication Holding |
| Hangzhou Guotai vs. Shenzhen MYS Environmental | Hangzhou Guotai vs. AVIC Fund Management | Hangzhou Guotai vs. Rongan Property Co | Hangzhou Guotai vs. Haoxiangni Jujube Co |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |