Correlation Between Shenzhen Silver and Cinda Securities
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Silver Basis and Cinda Securities Co, you can compare the effects of market volatilities on Shenzhen Silver and Cinda Securities 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 Cinda Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Silver and Cinda Securities.
Diversification Opportunities for Shenzhen Silver and Cinda Securities
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Cinda is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Silver Basis and Cinda Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinda Securities 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 Cinda Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cinda Securities has no effect on the direction of Shenzhen Silver i.e., Shenzhen Silver and Cinda Securities go up and down completely randomly.
Pair Corralation between Shenzhen Silver and Cinda Securities
Assuming the 90 days trading horizon Shenzhen Silver Basis is expected to under-perform the Cinda Securities. In addition to that, Shenzhen Silver is 1.1 times more volatile than Cinda Securities Co. It trades about -0.49 of its total potential returns per unit of risk. Cinda Securities Co is currently generating about -0.32 per unit of volatility. If you would invest 1,573 in Cinda Securities Co on October 14, 2024 and sell it today you would lose (232.00) from holding Cinda Securities Co or give up 14.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Silver Basis vs. Cinda Securities Co
Performance |
| Timeline |
| Shenzhen Silver Basis |
| Cinda Securities |
Shenzhen Silver and Cinda Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Silver and Cinda Securities
The main advantage of trading using opposite Shenzhen Silver and Cinda Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Silver position performs unexpectedly, Cinda Securities 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 Cinda Securities will offset losses from the drop in Cinda Securities' long position.| Shenzhen Silver vs. Fiberhome Telecommunication Technologies | Shenzhen Silver vs. Ziel Home Furnishing | Shenzhen Silver vs. Xilong Chemical Co | Shenzhen Silver vs. Shandong Homey Aquatic |
| Cinda Securities vs. Zijin Mining Group | Cinda Securities vs. Innovative Medical Management | Cinda Securities vs. Medprin Regenerative Medical | Cinda Securities vs. Shenzhen Silver Basis |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |