Correlation Between Shenzhen MYS and Fuda Alloy
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By analyzing existing cross correlation between Shenzhen MYS Environmental and Fuda Alloy Materials, you can compare the effects of market volatilities on Shenzhen MYS and Fuda Alloy 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 Fuda Alloy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Fuda Alloy.
Diversification Opportunities for Shenzhen MYS and Fuda Alloy
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and Fuda is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and Fuda Alloy Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuda Alloy Materials 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 Fuda Alloy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuda Alloy Materials has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and Fuda Alloy go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Fuda Alloy
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to under-perform the Fuda Alloy. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen MYS Environmental is 1.1 times less risky than Fuda Alloy. The stock trades about -0.07 of its potential returns per unit of risk. The Fuda Alloy Materials is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,327 in Fuda Alloy Materials on October 30, 2024 and sell it today you would earn a total of 190.00 from holding Fuda Alloy Materials or generate 14.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MYS Environmental vs. Fuda Alloy Materials
Performance |
| Timeline |
| Shenzhen MYS Environ |
| Fuda Alloy Materials |
Shenzhen MYS and Fuda Alloy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and Fuda Alloy
The main advantage of trading using opposite Shenzhen MYS and Fuda Alloy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, Fuda Alloy 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 Fuda Alloy will offset losses from the drop in Fuda Alloy's long position.| Shenzhen MYS vs. Capitalonline Data Service | Shenzhen MYS vs. Fujian Nanwang Environment | Shenzhen MYS vs. Shandong Iron and | Shenzhen MYS vs. Chengdu Spaceon Electronics |
| Fuda Alloy vs. Industrial and Commercial | Fuda Alloy vs. China Construction Bank | Fuda Alloy vs. Bank of China | Fuda Alloy vs. Agricultural Bank of |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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