Correlation Between Shenzhen MYS and Jiangsu Flowers
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By analyzing existing cross correlation between Shenzhen MYS Environmental and Jiangsu Flowers King, you can compare the effects of market volatilities on Shenzhen MYS and Jiangsu Flowers 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 Jiangsu Flowers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Jiangsu Flowers.
Diversification Opportunities for Shenzhen MYS and Jiangsu Flowers
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shenzhen and Jiangsu is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and Jiangsu Flowers King in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Flowers King 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 Jiangsu Flowers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Flowers King has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and Jiangsu Flowers go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Jiangsu Flowers
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to under-perform the Jiangsu Flowers. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen MYS Environmental is 3.05 times less risky than Jiangsu Flowers. The stock trades about -0.09 of its potential returns per unit of risk. The Jiangsu Flowers King is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,332 in Jiangsu Flowers King on October 25, 2024 and sell it today you would lose (165.00) from holding Jiangsu Flowers King or give up 12.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MYS Environmental vs. Jiangsu Flowers King
Performance |
| Timeline |
| Shenzhen MYS Environ |
| Jiangsu Flowers King |
Shenzhen MYS and Jiangsu Flowers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and Jiangsu Flowers
The main advantage of trading using opposite Shenzhen MYS and Jiangsu Flowers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, Jiangsu Flowers 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 Jiangsu Flowers will offset losses from the drop in Jiangsu Flowers' long position.| Shenzhen MYS vs. Shenyang Blue Silver | Shenzhen MYS vs. Beijing Kingsoft Office | Shenzhen MYS vs. Shengda Mining Co | Shenzhen MYS vs. Shenzhen Silver Basis |
| Jiangsu Flowers vs. Servyou Software Group | Jiangsu Flowers vs. Guotai Epoint Software | Jiangsu Flowers vs. Linewell Software Co | Jiangsu Flowers vs. China Building Material |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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