Correlation Between Shenzhen MYS and 360 Security
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By analyzing existing cross correlation between Shenzhen MYS Environmental and 360 Security Technology, you can compare the effects of market volatilities on Shenzhen MYS and 360 Security 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 360 Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and 360 Security.
Diversification Opportunities for Shenzhen MYS and 360 Security
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and 360 is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and 360 Security Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 360 Security Technology 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 360 Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 360 Security Technology has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and 360 Security go up and down completely randomly.
Pair Corralation between Shenzhen MYS and 360 Security
Assuming the 90 days trading horizon Shenzhen MYS is expected to generate 2.66 times less return on investment than 360 Security. But when comparing it to its historical volatility, Shenzhen MYS Environmental is 1.57 times less risky than 360 Security. It trades about 0.02 of its potential returns per unit of risk. 360 Security Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 714.00 in 360 Security Technology on October 24, 2024 and sell it today you would earn a total of 295.00 from holding 360 Security Technology or generate 41.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MYS Environmental vs. 360 Security Technology
Performance |
| Timeline |
| Shenzhen MYS Environ |
| 360 Security Technology |
Shenzhen MYS and 360 Security Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and 360 Security
The main advantage of trading using opposite Shenzhen MYS and 360 Security positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, 360 Security 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 360 Security will offset losses from the drop in 360 Security's long position.| Shenzhen MYS vs. Runjian Communication Co | Shenzhen MYS vs. FSPG Hi Tech Co | Shenzhen MYS vs. Qingdao Choho Industrial | Shenzhen MYS vs. China Minmetals Rare |
| 360 Security vs. China Eastern Airlines | 360 Security vs. Jiangxi Hengda Hi Tech | 360 Security vs. Unisplendour Corp | 360 Security vs. Shenzhen MYS Environmental |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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