Correlation Between Shenzhen MYS and Industrial
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By analyzing existing cross correlation between Shenzhen MYS Environmental and Industrial and Commercial, you can compare the effects of market volatilities on Shenzhen MYS and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Industrial.
Diversification Opportunities for Shenzhen MYS and Industrial
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenzhen and Industrial is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and Industrial go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Industrial
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 2.38 times more return on investment than Industrial. However, Shenzhen MYS is 2.38 times more volatile than Industrial and Commercial. It trades about 0.23 of its potential returns per unit of risk. Industrial and Commercial is currently generating about 0.1 per unit of risk. If you would invest 247.00 in Shenzhen MYS Environmental on September 4, 2024 and sell it today you would earn a total of 143.00 from holding Shenzhen MYS Environmental or generate 57.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MYS Environmental vs. Industrial and Commercial
Performance |
| Timeline |
| Shenzhen MYS Environ |
| Industrial and Commercial |
Shenzhen MYS and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and Industrial
The main advantage of trading using opposite Shenzhen MYS and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial'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 |
| Industrial vs. China Life Insurance | Industrial vs. Shenzhen MYS Environmental | Industrial vs. Anhui Fuhuang Steel | Industrial vs. China Sports Industry |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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