Correlation Between Shenzhen Glory and Sichuan Newsnet
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By analyzing existing cross correlation between Shenzhen Glory Medical and Sichuan Newsnet Media, you can compare the effects of market volatilities on Shenzhen Glory and Sichuan Newsnet 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 Glory with a short position of Sichuan Newsnet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Glory and Sichuan Newsnet.
Diversification Opportunities for Shenzhen Glory and Sichuan Newsnet
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Sichuan is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Glory Medical and Sichuan Newsnet Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Newsnet Media and Shenzhen Glory 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 Glory Medical are associated (or correlated) with Sichuan Newsnet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Newsnet Media has no effect on the direction of Shenzhen Glory i.e., Shenzhen Glory and Sichuan Newsnet go up and down completely randomly.
Pair Corralation between Shenzhen Glory and Sichuan Newsnet
Assuming the 90 days trading horizon Shenzhen Glory Medical is expected to under-perform the Sichuan Newsnet. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Glory Medical is 1.58 times less risky than Sichuan Newsnet. The stock trades about -0.01 of its potential returns per unit of risk. The Sichuan Newsnet Media is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,416 in Sichuan Newsnet Media on November 1, 2024 and sell it today you would earn a total of 108.00 from holding Sichuan Newsnet Media or generate 7.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Glory Medical vs. Sichuan Newsnet Media
Performance |
| Timeline |
| Shenzhen Glory Medical |
| Sichuan Newsnet Media |
Shenzhen Glory and Sichuan Newsnet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Glory and Sichuan Newsnet
The main advantage of trading using opposite Shenzhen Glory and Sichuan Newsnet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Glory position performs unexpectedly, Sichuan Newsnet 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 Sichuan Newsnet will offset losses from the drop in Sichuan Newsnet's long position.| Shenzhen Glory vs. Aluminum Corp of | Shenzhen Glory vs. Beijing Kingsoft Office | Shenzhen Glory vs. Jiaozuo Wanfang Aluminum | Shenzhen Glory vs. AUPU Home Style |
| Sichuan Newsnet vs. Allgens Medical Technology | Sichuan Newsnet vs. Double Medical Technology | Sichuan Newsnet vs. Shandong Intco Medical | Sichuan Newsnet vs. Shenzhen Glory Medical |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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