Correlation Between Shanghai Yaoji and Shenzhen MYS
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By analyzing existing cross correlation between Shanghai Yaoji Playing and Shenzhen MYS Environmental, you can compare the effects of market volatilities on Shanghai Yaoji 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 Shanghai Yaoji with a short position of Shenzhen MYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yaoji and Shenzhen MYS.
Diversification Opportunities for Shanghai Yaoji and Shenzhen MYS
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Shenzhen is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yaoji Playing 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 Shanghai Yaoji 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 Shanghai Yaoji Playing 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 Shanghai Yaoji i.e., Shanghai Yaoji and Shenzhen MYS go up and down completely randomly.
Pair Corralation between Shanghai Yaoji and Shenzhen MYS
Assuming the 90 days trading horizon Shanghai Yaoji Playing is expected to generate 1.67 times more return on investment than Shenzhen MYS. However, Shanghai Yaoji is 1.67 times more volatile than Shenzhen MYS Environmental. It trades about 0.17 of its potential returns per unit of risk. Shenzhen MYS Environmental is currently generating about 0.25 per unit of risk. If you would invest 2,626 in Shanghai Yaoji Playing on August 25, 2024 and sell it today you would earn a total of 415.00 from holding Shanghai Yaoji Playing or generate 15.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yaoji Playing vs. Shenzhen MYS Environmental
Performance |
| Timeline |
| Shanghai Yaoji Playing |
| Shenzhen MYS Environ |
Shanghai Yaoji and Shenzhen MYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yaoji and Shenzhen MYS
The main advantage of trading using opposite Shanghai Yaoji and Shenzhen MYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yaoji 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.| Shanghai Yaoji vs. Shenzhen MYS Environmental | Shanghai Yaoji vs. AVIC Fund Management | Shanghai Yaoji vs. Shenzhen Bingchuan Network | Shanghai Yaoji vs. Penghua Shenzhen Energy |
| Shenzhen MYS vs. Zijin Mining Group | Shenzhen MYS vs. Wanhua Chemical Group | Shenzhen MYS vs. Baoshan Iron Steel | Shenzhen MYS vs. Shandong Gold Mining |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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