Correlation Between Shenzhen Silver and Shenzhen
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By analyzing existing cross correlation between Shenzhen Silver Basis and Shenzhen SC New, you can compare the effects of market volatilities on Shenzhen Silver and 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 Shenzhen Silver with a short position of Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Silver and Shenzhen.
Diversification Opportunities for Shenzhen Silver and Shenzhen
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Shenzhen is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Silver Basis and Shenzhen SC New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen SC New 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 Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen SC New has no effect on the direction of Shenzhen Silver i.e., Shenzhen Silver and Shenzhen go up and down completely randomly.
Pair Corralation between Shenzhen Silver and Shenzhen
Assuming the 90 days trading horizon Shenzhen Silver is expected to generate 6.87 times less return on investment than Shenzhen. In addition to that, Shenzhen Silver is 1.16 times more volatile than Shenzhen SC New. It trades about 0.0 of its total potential returns per unit of risk. Shenzhen SC New is currently generating about 0.03 per unit of volatility. If you would invest 6,030 in Shenzhen SC New on September 12, 2024 and sell it today you would earn a total of 751.00 from holding Shenzhen SC New or generate 12.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Silver Basis vs. Shenzhen SC New
Performance |
| Timeline |
| Shenzhen Silver Basis |
| Shenzhen SC New |
Shenzhen Silver and Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Silver and Shenzhen
The main advantage of trading using opposite Shenzhen Silver and Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Silver position performs unexpectedly, 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 Shenzhen will offset losses from the drop in Shenzhen's long position.| Shenzhen Silver vs. Hunan Mendale Hometextile | Shenzhen Silver vs. Oppein Home Group | Shenzhen Silver vs. Chengdu Spaceon Electronics | Shenzhen Silver vs. Sanbo Hospital Management |
| Shenzhen vs. Yindu Kitchen Equipment | Shenzhen vs. Lander Sports Development | Shenzhen vs. Shenzhen Silver Basis | Shenzhen vs. Tianjin Silvery Dragon |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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