Correlation Between Shenzhen MTC and 159681
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By analyzing existing cross correlation between Shenzhen MTC Co and 159681, you can compare the effects of market volatilities on Shenzhen MTC and 159681 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 MTC with a short position of 159681. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MTC and 159681.
Diversification Opportunities for Shenzhen MTC and 159681
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and 159681 is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MTC Co and 159681 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 159681 and Shenzhen MTC 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 MTC Co are associated (or correlated) with 159681. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 159681 has no effect on the direction of Shenzhen MTC i.e., Shenzhen MTC and 159681 go up and down completely randomly.
Pair Corralation between Shenzhen MTC and 159681
Assuming the 90 days trading horizon Shenzhen MTC Co is expected to under-perform the 159681. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen MTC Co is 1.29 times less risky than 159681. The stock trades about -0.01 of its potential returns per unit of risk. The 159681 is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 74.00 in 159681 on August 25, 2024 and sell it today you would earn a total of 22.00 from holding 159681 or generate 29.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MTC Co vs. 159681
Performance |
| Timeline |
| Shenzhen MTC |
| 159681 |
Shenzhen MTC and 159681 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MTC and 159681
The main advantage of trading using opposite Shenzhen MTC and 159681 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MTC position performs unexpectedly, 159681 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 159681 will offset losses from the drop in 159681's long position.| Shenzhen MTC vs. JiShi Media Co | Shenzhen MTC vs. Central Plains Environment | Shenzhen MTC vs. Tongxing Environmental Protection | Shenzhen MTC vs. Eit Environmental Development |
| 159681 vs. Shenzhen MTC Co | 159681 vs. Ming Yang Smart | 159681 vs. Changzhou Almaden Co | 159681 vs. 159005 |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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