Correlation Between Shenzhen MYS and Tianjin Hi
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By analyzing existing cross correlation between Shenzhen MYS Environmental and Tianjin Hi Tech Development, you can compare the effects of market volatilities on Shenzhen MYS and Tianjin Hi 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 Tianjin Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Tianjin Hi.
Diversification Opportunities for Shenzhen MYS and Tianjin Hi
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Tianjin is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and Tianjin Hi Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Hi Tech 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 Tianjin Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Hi Tech has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and Tianjin Hi go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Tianjin Hi
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 0.84 times more return on investment than Tianjin Hi. However, Shenzhen MYS Environmental is 1.19 times less risky than Tianjin Hi. It trades about 0.02 of its potential returns per unit of risk. Tianjin Hi Tech Development is currently generating about 0.0 per unit of risk. If you would invest 303.00 in Shenzhen MYS Environmental on October 26, 2024 and sell it today you would earn a total of 37.00 from holding Shenzhen MYS Environmental or generate 12.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MYS Environmental vs. Tianjin Hi Tech Development
Performance |
| Timeline |
| Shenzhen MYS Environ |
| Tianjin Hi Tech |
Shenzhen MYS and Tianjin Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and Tianjin Hi
The main advantage of trading using opposite Shenzhen MYS and Tianjin Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, Tianjin Hi 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 Tianjin Hi will offset losses from the drop in Tianjin Hi'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 |
| Tianjin Hi vs. Dhc Software Co | Tianjin Hi vs. Shanghai Construction Group | Tianjin Hi vs. Kangping Technology Co | Tianjin Hi vs. XiaMen HongXin Electron tech |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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