Correlation Between Shenzhen Silver and Gansu Huangtai
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By analyzing existing cross correlation between Shenzhen Silver Basis and Gansu Huangtai Wine marketing, you can compare the effects of market volatilities on Shenzhen Silver and Gansu Huangtai 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 Silver with a short position of Gansu Huangtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Silver and Gansu Huangtai.
Diversification Opportunities for Shenzhen Silver and Gansu Huangtai
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and Gansu is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Silver Basis and Gansu Huangtai Wine marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Huangtai Wine and Shenzhen Silver 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 Silver Basis are associated (or correlated) with Gansu Huangtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Huangtai Wine has no effect on the direction of Shenzhen Silver i.e., Shenzhen Silver and Gansu Huangtai go up and down completely randomly.
Pair Corralation between Shenzhen Silver and Gansu Huangtai
Assuming the 90 days trading horizon Shenzhen Silver Basis is expected to generate 0.66 times more return on investment than Gansu Huangtai. However, Shenzhen Silver Basis is 1.52 times less risky than Gansu Huangtai. It trades about -0.05 of its potential returns per unit of risk. Gansu Huangtai Wine marketing is currently generating about -0.12 per unit of risk. If you would invest 910.00 in Shenzhen Silver Basis on November 3, 2024 and sell it today you would lose (32.00) from holding Shenzhen Silver Basis or give up 3.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Silver Basis vs. Gansu Huangtai Wine marketing
Performance |
| Timeline |
| Shenzhen Silver Basis |
| Gansu Huangtai Wine |
Shenzhen Silver and Gansu Huangtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Silver and Gansu Huangtai
The main advantage of trading using opposite Shenzhen Silver and Gansu Huangtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Silver position performs unexpectedly, Gansu Huangtai 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 Gansu Huangtai will offset losses from the drop in Gansu Huangtai's long position.| Shenzhen Silver vs. China Longyuan Power | Shenzhen Silver vs. PetroChina Co Ltd | Shenzhen Silver vs. Guangxi Guiguan Electric | Shenzhen Silver vs. Yantai North Andre |
| Gansu Huangtai vs. Harbin Air Conditioning | Gansu Huangtai vs. Dr Peng Telecom | Gansu Huangtai vs. Vats Liquor Chain | Gansu Huangtai vs. China Sports Industry |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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