Correlation Between Changchun and Shenzhen Noposion
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By analyzing existing cross correlation between Changchun UP Optotech and Shenzhen Noposion Agrochemicals, you can compare the effects of market volatilities on Changchun and Shenzhen Noposion 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 Changchun with a short position of Shenzhen Noposion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun and Shenzhen Noposion.
Diversification Opportunities for Changchun and Shenzhen Noposion
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Changchun and Shenzhen is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Changchun UP Optotech and Shenzhen Noposion Agrochemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Noposion and Changchun 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 Changchun UP Optotech are associated (or correlated) with Shenzhen Noposion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Noposion has no effect on the direction of Changchun i.e., Changchun and Shenzhen Noposion go up and down completely randomly.
Pair Corralation between Changchun and Shenzhen Noposion
Assuming the 90 days trading horizon Changchun is expected to generate 1.38 times less return on investment than Shenzhen Noposion. In addition to that, Changchun is 1.38 times more volatile than Shenzhen Noposion Agrochemicals. It trades about 0.03 of its total potential returns per unit of risk. Shenzhen Noposion Agrochemicals is currently generating about 0.05 per unit of volatility. If you would invest 709.00 in Shenzhen Noposion Agrochemicals on August 25, 2024 and sell it today you would earn a total of 240.00 from holding Shenzhen Noposion Agrochemicals or generate 33.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun UP Optotech vs. Shenzhen Noposion Agrochemical
Performance |
| Timeline |
| Changchun UP Optotech |
| Shenzhen Noposion |
Changchun and Shenzhen Noposion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun and Shenzhen Noposion
The main advantage of trading using opposite Changchun and Shenzhen Noposion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun position performs unexpectedly, Shenzhen Noposion 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 Shenzhen Noposion will offset losses from the drop in Shenzhen Noposion's long position.| Changchun vs. Chengdu Kanghua Biological | Changchun vs. Beijing Wantai Biological | Changchun vs. Suzhou Novoprotein Scientific | Changchun vs. Aluminum Corp of |
| Shenzhen Noposion vs. Tongyu Communication | Shenzhen Noposion vs. Holitech Technology Co | Shenzhen Noposion vs. Sunwave Communications Co | Shenzhen Noposion vs. Changchun UP Optotech |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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