Correlation Between Shenzhen MYS and Xinya Electronic
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen MYS Environmental and Xinya Electronic Co, you can compare the effects of market volatilities on Shenzhen MYS and Xinya Electronic 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 Xinya Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Xinya Electronic.
Diversification Opportunities for Shenzhen MYS and Xinya Electronic
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shenzhen and Xinya is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and Xinya Electronic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinya Electronic 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 Xinya Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinya Electronic has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and Xinya Electronic go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Xinya Electronic
Assuming the 90 days trading horizon Shenzhen MYS is expected to generate 3.49 times less return on investment than Xinya Electronic. But when comparing it to its historical volatility, Shenzhen MYS Environmental is 1.52 times less risky than Xinya Electronic. It trades about 0.02 of its potential returns per unit of risk. Xinya Electronic Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,010 in Xinya Electronic Co on October 30, 2024 and sell it today you would earn a total of 785.00 from holding Xinya Electronic Co or generate 77.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shenzhen MYS Environmental vs. Xinya Electronic Co
Performance |
| Timeline |
| Shenzhen MYS Environ |
| Xinya Electronic |
Shenzhen MYS and Xinya Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and Xinya Electronic
The main advantage of trading using opposite Shenzhen MYS and Xinya Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, Xinya Electronic 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 Xinya Electronic will offset losses from the drop in Xinya Electronic'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 |
| Xinya Electronic vs. Union Semiconductor Co | Xinya Electronic vs. Shandong Publishing Media | Xinya Electronic vs. GUOMAI Culture Media | Xinya Electronic vs. Thinkingdom Media Group |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |