Correlation Between Shenzhen MYS and Shanghai Material
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By analyzing existing cross correlation between Shenzhen MYS Environmental and Shanghai Material Trading, you can compare the effects of market volatilities on Shenzhen MYS and Shanghai Material 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 Material. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Shanghai Material.
Diversification Opportunities for Shenzhen MYS and Shanghai Material
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Shanghai is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and Shanghai Material Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Material Trading 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 Material. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Material Trading has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and Shanghai Material go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Shanghai Material
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 0.92 times more return on investment than Shanghai Material. However, Shenzhen MYS Environmental is 1.08 times less risky than Shanghai Material. It trades about -0.4 of its potential returns per unit of risk. Shanghai Material Trading is currently generating about -0.41 per unit of risk. If you would invest 406.00 in Shenzhen MYS Environmental on October 14, 2024 and sell it today you would lose (91.00) from holding Shenzhen MYS Environmental or give up 22.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MYS Environmental vs. Shanghai Material Trading
Performance |
| Timeline |
| Shenzhen MYS Environ |
| Shanghai Material Trading |
Shenzhen MYS and Shanghai Material Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and Shanghai Material
The main advantage of trading using opposite Shenzhen MYS and Shanghai Material positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, Shanghai Material 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 Material will offset losses from the drop in Shanghai Material'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 |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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