Correlation Between Shenzhen MYS and HeBei Jinniu
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By analyzing existing cross correlation between Shenzhen MYS Environmental and HeBei Jinniu Chemical, you can compare the effects of market volatilities on Shenzhen MYS and HeBei Jinniu 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 HeBei Jinniu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and HeBei Jinniu.
Diversification Opportunities for Shenzhen MYS and HeBei Jinniu
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and HeBei is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and HeBei Jinniu Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeBei Jinniu Chemical 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 HeBei Jinniu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeBei Jinniu Chemical has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and HeBei Jinniu go up and down completely randomly.
Pair Corralation between Shenzhen MYS and HeBei Jinniu
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 0.98 times more return on investment than HeBei Jinniu. However, Shenzhen MYS Environmental is 1.02 times less risky than HeBei Jinniu. It trades about 0.06 of its potential returns per unit of risk. HeBei Jinniu Chemical is currently generating about 0.03 per unit of risk. If you would invest 262.00 in Shenzhen MYS Environmental on September 4, 2024 and sell it today you would earn a total of 128.00 from holding Shenzhen MYS Environmental or generate 48.85% 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. HeBei Jinniu Chemical
Performance |
| Timeline |
| Shenzhen MYS Environ |
| HeBei Jinniu Chemical |
Shenzhen MYS and HeBei Jinniu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and HeBei Jinniu
The main advantage of trading using opposite Shenzhen MYS and HeBei Jinniu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, HeBei Jinniu 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 HeBei Jinniu will offset losses from the drop in HeBei Jinniu's long position.| Shenzhen MYS vs. Qilu Bank Co | Shenzhen MYS vs. Shanghai Sanyou Medical | Shenzhen MYS vs. Guangzhou Boji Medical | Shenzhen MYS vs. Panda Financial Holding |
| HeBei Jinniu vs. Zijin Mining Group | HeBei Jinniu vs. Wanhua Chemical Group | HeBei Jinniu vs. Baoshan Iron Steel | HeBei Jinniu vs. Shandong Gold Mining |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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