Correlation Between Shenzhen MYS and China Enterprise
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By analyzing existing cross correlation between Shenzhen MYS Environmental and China Enterprise Co, you can compare the effects of market volatilities on Shenzhen MYS and China Enterprise 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 China Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and China Enterprise.
Diversification Opportunities for Shenzhen MYS and China Enterprise
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and China is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and China Enterprise Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Enterprise 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 China Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Enterprise has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and China Enterprise go up and down completely randomly.
Pair Corralation between Shenzhen MYS and China Enterprise
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 1.03 times more return on investment than China Enterprise. However, Shenzhen MYS is 1.03 times more volatile than China Enterprise Co. It trades about -0.02 of its potential returns per unit of risk. China Enterprise Co is currently generating about -0.04 per unit of risk. If you would invest 375.00 in Shenzhen MYS Environmental on September 28, 2024 and sell it today you would lose (8.00) from holding Shenzhen MYS Environmental or give up 2.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MYS Environmental vs. China Enterprise Co
Performance |
| Timeline |
| Shenzhen MYS Environ |
| China Enterprise |
Shenzhen MYS and China Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and China Enterprise
The main advantage of trading using opposite Shenzhen MYS and China Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, China Enterprise 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 China Enterprise will offset losses from the drop in China Enterprise's long position.| Shenzhen MYS vs. Guocheng Mining Co | Shenzhen MYS vs. Zhengzhou Coal Mining | Shenzhen MYS vs. Chenzhou Jingui Silver | Shenzhen MYS vs. Qingdao Hi Tech Moulds |
| China Enterprise vs. INKON Life Technology | China Enterprise vs. Chahua Modern Housewares | China Enterprise vs. Anhui Deli Household | China Enterprise vs. China World Trade |
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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