Correlation Between Shenzhen Glory and Niutech Environment
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By analyzing existing cross correlation between Shenzhen Glory Medical and Niutech Environment Technology, you can compare the effects of market volatilities on Shenzhen Glory and Niutech Environment 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 Niutech Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Glory and Niutech Environment.
Diversification Opportunities for Shenzhen Glory and Niutech Environment
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Niutech is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Glory Medical and Niutech Environment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niutech Environment 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 Niutech Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Niutech Environment has no effect on the direction of Shenzhen Glory i.e., Shenzhen Glory and Niutech Environment go up and down completely randomly.
Pair Corralation between Shenzhen Glory and Niutech Environment
Assuming the 90 days trading horizon Shenzhen Glory Medical is expected to generate 0.97 times more return on investment than Niutech Environment. However, Shenzhen Glory Medical is 1.03 times less risky than Niutech Environment. It trades about 0.07 of its potential returns per unit of risk. Niutech Environment Technology is currently generating about -0.07 per unit of risk. If you would invest 312.00 in Shenzhen Glory Medical on August 26, 2024 and sell it today you would earn a total of 11.00 from holding Shenzhen Glory Medical or generate 3.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Glory Medical vs. Niutech Environment Technology
Performance |
| Timeline |
| Shenzhen Glory Medical |
| Niutech Environment |
Shenzhen Glory and Niutech Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Glory and Niutech Environment
The main advantage of trading using opposite Shenzhen Glory and Niutech Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Glory position performs unexpectedly, Niutech Environment 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 Niutech Environment will offset losses from the drop in Niutech Environment's long position.| Shenzhen Glory vs. Lutian Machinery Co | Shenzhen Glory vs. China Longyuan Power | Shenzhen Glory vs. Changshu Tongrun Auto | Shenzhen Glory vs. PetroChina Co Ltd |
| Niutech Environment vs. Ningbo Construction Co | Niutech Environment vs. GRINM Semiconductor Materials | Niutech Environment vs. Shenzhen Glory Medical | Niutech Environment vs. StarPower Semiconductor |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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