Correlation Between Shenzhen MYS and TianJin 712
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By analyzing existing cross correlation between Shenzhen MYS Environmental and TianJin 712 Communication, you can compare the effects of market volatilities on Shenzhen MYS and TianJin 712 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 TianJin 712. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and TianJin 712.
Diversification Opportunities for Shenzhen MYS and TianJin 712
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and TianJin is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and TianJin 712 Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TianJin 712 Communication 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 TianJin 712. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TianJin 712 Communication has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and TianJin 712 go up and down completely randomly.
Pair Corralation between Shenzhen MYS and TianJin 712
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 0.92 times more return on investment than TianJin 712. However, Shenzhen MYS Environmental is 1.08 times less risky than TianJin 712. It trades about 0.13 of its potential returns per unit of risk. TianJin 712 Communication is currently generating about 0.0 per unit of risk. If you would invest 207.00 in Shenzhen MYS Environmental on October 30, 2024 and sell it today you would earn a total of 133.00 from holding Shenzhen MYS Environmental or generate 64.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MYS Environmental vs. TianJin 712 Communication
Performance |
| Timeline |
| Shenzhen MYS Environ |
| TianJin 712 Communication |
Shenzhen MYS and TianJin 712 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and TianJin 712
The main advantage of trading using opposite Shenzhen MYS and TianJin 712 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, TianJin 712 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 TianJin 712 will offset losses from the drop in TianJin 712'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 |
| TianJin 712 vs. Touchstone International Medical | TianJin 712 vs. Zhongzhu Medical Holdings | TianJin 712 vs. Kidswant Children Products | TianJin 712 vs. Double Medical Technology |
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 CEOs Directory module to screen CEOs from public companies around the world.
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