Correlation Between Shenzhen Silver and Beijing Wantai
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By analyzing existing cross correlation between Shenzhen Silver Basis and Beijing Wantai Biological, you can compare the effects of market volatilities on Shenzhen Silver and Beijing Wantai 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 Beijing Wantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Silver and Beijing Wantai.
Diversification Opportunities for Shenzhen Silver and Beijing Wantai
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Beijing is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Silver Basis and Beijing Wantai Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wantai Biological 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 Beijing Wantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wantai Biological has no effect on the direction of Shenzhen Silver i.e., Shenzhen Silver and Beijing Wantai go up and down completely randomly.
Pair Corralation between Shenzhen Silver and Beijing Wantai
Assuming the 90 days trading horizon Shenzhen Silver Basis is expected to under-perform the Beijing Wantai. In addition to that, Shenzhen Silver is 1.96 times more volatile than Beijing Wantai Biological. It trades about -0.16 of its total potential returns per unit of risk. Beijing Wantai Biological is currently generating about 0.05 per unit of volatility. If you would invest 7,478 in Beijing Wantai Biological on September 13, 2024 and sell it today you would earn a total of 124.00 from holding Beijing Wantai Biological or generate 1.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Silver Basis vs. Beijing Wantai Biological
Performance |
| Timeline |
| Shenzhen Silver Basis |
| Beijing Wantai Biological |
Shenzhen Silver and Beijing Wantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Silver and Beijing Wantai
The main advantage of trading using opposite Shenzhen Silver and Beijing Wantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Silver position performs unexpectedly, Beijing Wantai 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 Beijing Wantai will offset losses from the drop in Beijing Wantai'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 |
| Beijing Wantai vs. Jiangsu Yanghe Brewery | Beijing Wantai vs. Ningxia Building Materials | Beijing Wantai vs. Super Dragon Engineering Plastics | Beijing Wantai vs. Sinosteel Luonai Materials |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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