Correlation Between Shenzhen MYS and Shanghai Jinfeng
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By analyzing existing cross correlation between Shenzhen MYS Environmental and Shanghai Jinfeng Wine, you can compare the effects of market volatilities on Shenzhen MYS and Shanghai Jinfeng 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 Shanghai Jinfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Shanghai Jinfeng.
Diversification Opportunities for Shenzhen MYS and Shanghai Jinfeng
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Shanghai is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and Shanghai Jinfeng Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jinfeng Wine 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 Shanghai Jinfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jinfeng Wine has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and Shanghai Jinfeng go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Shanghai Jinfeng
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 1.08 times more return on investment than Shanghai Jinfeng. However, Shenzhen MYS is 1.08 times more volatile than Shanghai Jinfeng Wine. It trades about 0.07 of its potential returns per unit of risk. Shanghai Jinfeng Wine is currently generating about 0.02 per unit of risk. If you would invest 281.00 in Shenzhen MYS Environmental on September 12, 2024 and sell it today you would earn a total of 132.00 from holding Shenzhen MYS Environmental or generate 46.98% 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. Shanghai Jinfeng Wine
Performance |
| Timeline |
| Shenzhen MYS Environ |
| Shanghai Jinfeng Wine |
Shenzhen MYS and Shanghai Jinfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and Shanghai Jinfeng
The main advantage of trading using opposite Shenzhen MYS and Shanghai Jinfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, Shanghai Jinfeng 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 Shanghai Jinfeng will offset losses from the drop in Shanghai Jinfeng's long position.| Shenzhen MYS vs. Ligao Foods CoLtd | Shenzhen MYS vs. Muyuan Foodstuff Co | Shenzhen MYS vs. Youyou Foods Co | Shenzhen MYS vs. Leyard Optoelectronic |
| Shanghai Jinfeng vs. Eastern Communications Co | Shanghai Jinfeng vs. Hubeiyichang Transportation Group | Shanghai Jinfeng vs. Sportsoul Co Ltd | Shanghai Jinfeng vs. Guangzhou Haige Communications |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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