Correlation Between Chenzhou Jingui and Leaguer Shenzhen
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By analyzing existing cross correlation between Chenzhou Jingui Silver and Leaguer Shenzhen MicroElectronics, you can compare the effects of market volatilities on Chenzhou Jingui and Leaguer Shenzhen 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 Chenzhou Jingui with a short position of Leaguer Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chenzhou Jingui and Leaguer Shenzhen.
Diversification Opportunities for Chenzhou Jingui and Leaguer Shenzhen
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chenzhou and Leaguer is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Chenzhou Jingui Silver and Leaguer Shenzhen MicroElectron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leaguer Shenzhen Mic and Chenzhou Jingui 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 Chenzhou Jingui Silver are associated (or correlated) with Leaguer Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leaguer Shenzhen Mic has no effect on the direction of Chenzhou Jingui i.e., Chenzhou Jingui and Leaguer Shenzhen go up and down completely randomly.
Pair Corralation between Chenzhou Jingui and Leaguer Shenzhen
Assuming the 90 days trading horizon Chenzhou Jingui Silver is expected to generate 0.9 times more return on investment than Leaguer Shenzhen. However, Chenzhou Jingui Silver is 1.11 times less risky than Leaguer Shenzhen. It trades about 0.05 of its potential returns per unit of risk. Leaguer Shenzhen MicroElectronics is currently generating about 0.01 per unit of risk. If you would invest 274.00 in Chenzhou Jingui Silver on September 4, 2024 and sell it today you would earn a total of 103.00 from holding Chenzhou Jingui Silver or generate 37.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chenzhou Jingui Silver vs. Leaguer Shenzhen MicroElectron
Performance |
| Timeline |
| Chenzhou Jingui Silver |
| Leaguer Shenzhen Mic |
Chenzhou Jingui and Leaguer Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chenzhou Jingui and Leaguer Shenzhen
The main advantage of trading using opposite Chenzhou Jingui and Leaguer Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chenzhou Jingui position performs unexpectedly, Leaguer Shenzhen 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 Leaguer Shenzhen will offset losses from the drop in Leaguer Shenzhen's long position.| Chenzhou Jingui vs. Zijin Mining Group | Chenzhou Jingui vs. Wanhua Chemical Group | Chenzhou Jingui vs. Baoshan Iron Steel | Chenzhou Jingui vs. Shandong Gold Mining |
| Leaguer Shenzhen vs. Qilu Bank Co | Leaguer Shenzhen vs. HMTNew Technical | Leaguer Shenzhen vs. Jinhe Biotechnology Co | Leaguer Shenzhen vs. Kuangda Technology Group |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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