Correlation Between Guangdong Qunxing and Shenzhen MYS
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By analyzing existing cross correlation between Guangdong Qunxing Toys and Shenzhen MYS Environmental, you can compare the effects of market volatilities on Guangdong Qunxing and Shenzhen MYS 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 Guangdong Qunxing with a short position of Shenzhen MYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Qunxing and Shenzhen MYS.
Diversification Opportunities for Guangdong Qunxing and Shenzhen MYS
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Shenzhen is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Qunxing Toys and Shenzhen MYS Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MYS Environ and Guangdong Qunxing 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 Guangdong Qunxing Toys are associated (or correlated) with Shenzhen MYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MYS Environ has no effect on the direction of Guangdong Qunxing i.e., Guangdong Qunxing and Shenzhen MYS go up and down completely randomly.
Pair Corralation between Guangdong Qunxing and Shenzhen MYS
Assuming the 90 days trading horizon Guangdong Qunxing is expected to generate 1.41 times less return on investment than Shenzhen MYS. In addition to that, Guangdong Qunxing is 1.35 times more volatile than Shenzhen MYS Environmental. It trades about 0.02 of its total potential returns per unit of risk. Shenzhen MYS Environmental is currently generating about 0.03 per unit of volatility. If you would invest 298.00 in Shenzhen MYS Environmental on August 31, 2024 and sell it today you would earn a total of 81.00 from holding Shenzhen MYS Environmental or generate 27.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.78% |
| Values | Daily Returns |
Guangdong Qunxing Toys vs. Shenzhen MYS Environmental
Performance |
| Timeline |
| Guangdong Qunxing Toys |
| Shenzhen MYS Environ |
Guangdong Qunxing and Shenzhen MYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Qunxing and Shenzhen MYS
The main advantage of trading using opposite Guangdong Qunxing and Shenzhen MYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Qunxing position performs unexpectedly, Shenzhen MYS 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 MYS will offset losses from the drop in Shenzhen MYS's long position.| Guangdong Qunxing vs. Xiamen Bank Co | Guangdong Qunxing vs. Haima Automobile Group | Guangdong Qunxing vs. SUNSEA Telecommunications Co | Guangdong Qunxing vs. Fiberhome Telecommunication Technologies |
| Shenzhen MYS vs. Xiandai Investment Co | Shenzhen MYS vs. Zhongrun Resources Investment | Shenzhen MYS vs. Shanghai Construction Group | Shenzhen MYS vs. Metro Investment Development |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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