Correlation Between Shenzhen New and Chengdu B
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By analyzing existing cross correlation between Shenzhen New Nanshan and Chengdu B ray Media, you can compare the effects of market volatilities on Shenzhen New and Chengdu B 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 Chengdu B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen New and Chengdu B.
Diversification Opportunities for Shenzhen New and Chengdu B
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Chengdu is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen New Nanshan and Chengdu B ray Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu B ray 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 Chengdu B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu B ray has no effect on the direction of Shenzhen New i.e., Shenzhen New and Chengdu B go up and down completely randomly.
Pair Corralation between Shenzhen New and Chengdu B
Assuming the 90 days trading horizon Shenzhen New Nanshan is expected to under-perform the Chengdu B. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen New Nanshan is 1.23 times less risky than Chengdu B. The stock trades about -0.03 of its potential returns per unit of risk. The Chengdu B ray Media is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 507.00 in Chengdu B ray Media on September 4, 2024 and sell it today you would earn a total of 2.00 from holding Chengdu B ray Media or generate 0.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen New Nanshan vs. Chengdu B ray Media
Performance |
| Timeline |
| Shenzhen New Nanshan |
| Chengdu B ray |
Shenzhen New and Chengdu B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen New and Chengdu B
The main advantage of trading using opposite Shenzhen New and Chengdu B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen New position performs unexpectedly, Chengdu B 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 Chengdu B will offset losses from the drop in Chengdu B's long position.| Shenzhen New vs. Industrial and Commercial | Shenzhen New vs. Kweichow Moutai Co | Shenzhen New vs. Agricultural Bank of | Shenzhen New vs. China Mobile Limited |
| Chengdu B vs. Aofu Environmental Technology | Chengdu B vs. GreenTech Environmental Co | Chengdu B vs. Cofoe Medical Technology | Chengdu B vs. Cowealth Medical China |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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