Correlation Between Shenzhen New and GRG Banking
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By analyzing existing cross correlation between Shenzhen New Nanshan and GRG Banking Equipment, you can compare the effects of market volatilities on Shenzhen New and GRG Banking 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 New with a short position of GRG Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen New and GRG Banking.
Diversification Opportunities for Shenzhen New and GRG Banking
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shenzhen and GRG is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen New Nanshan and GRG Banking Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRG Banking Equipment and Shenzhen New 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 New Nanshan are associated (or correlated) with GRG Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRG Banking Equipment has no effect on the direction of Shenzhen New i.e., Shenzhen New and GRG Banking go up and down completely randomly.
Pair Corralation between Shenzhen New and GRG Banking
Assuming the 90 days trading horizon Shenzhen New is expected to generate 3.66 times less return on investment than GRG Banking. But when comparing it to its historical volatility, Shenzhen New Nanshan is 2.34 times less risky than GRG Banking. It trades about 0.18 of its potential returns per unit of risk. GRG Banking Equipment is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 1,161 in GRG Banking Equipment on December 1, 2024 and sell it today you would earn a total of 265.00 from holding GRG Banking Equipment or generate 22.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen New Nanshan vs. GRG Banking Equipment
Performance |
| Timeline |
| Shenzhen New Nanshan |
| GRG Banking Equipment |
Shenzhen New and GRG Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen New and GRG Banking
The main advantage of trading using opposite Shenzhen New and GRG Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen New position performs unexpectedly, GRG Banking 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 GRG Banking will offset losses from the drop in GRG Banking's long position.| Shenzhen New vs. Guangzhou Seagull Kitchen | Shenzhen New vs. Universal Scientific Industrial | Shenzhen New vs. Ningbo Fujia Industrial | Shenzhen New vs. Harbin Air Conditioning |
| GRG Banking vs. Kuang Chi Technologies | GRG Banking vs. Giantec Semiconductor Corp | GRG Banking vs. Fiberhome Telecommunication Technologies | GRG Banking vs. Wintao Communications Co |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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