Correlation Between Shenzhen New and Offcn Education
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By analyzing existing cross correlation between Shenzhen New Nanshan and Offcn Education Technology, you can compare the effects of market volatilities on Shenzhen New and Offcn Education 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 Offcn Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen New and Offcn Education.
Diversification Opportunities for Shenzhen New and Offcn Education
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Offcn is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen New Nanshan and Offcn Education Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Offcn Education Tech 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 Offcn Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Offcn Education Tech has no effect on the direction of Shenzhen New i.e., Shenzhen New and Offcn Education go up and down completely randomly.
Pair Corralation between Shenzhen New and Offcn Education
Assuming the 90 days trading horizon Shenzhen New Nanshan is expected to under-perform the Offcn Education. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen New Nanshan is 1.78 times less risky than Offcn Education. The stock trades about -0.22 of its potential returns per unit of risk. The Offcn Education Technology is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 334.00 in Offcn Education Technology on November 3, 2024 and sell it today you would lose (9.00) from holding Offcn Education Technology or give up 2.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen New Nanshan vs. Offcn Education Technology
Performance |
| Timeline |
| Shenzhen New Nanshan |
| Offcn Education Tech |
Shenzhen New and Offcn Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen New and Offcn Education
The main advantage of trading using opposite Shenzhen New and Offcn Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen New position performs unexpectedly, Offcn Education 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 Offcn Education will offset losses from the drop in Offcn Education's long position.| Shenzhen New vs. Shandong Polymer Biochemicals | Shenzhen New vs. Xiandai Investment Co | Shenzhen New vs. Nuode Investment Co | Shenzhen New vs. Shenzhen Centralcon Investment |
| Offcn Education vs. Linewell Software Co | Offcn Education vs. Eyebright Medical Technology | Offcn Education vs. Soyea Technology Co | Offcn Education vs. ROPEOK Technology 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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