Correlation Between Shenzhen Silver and AUPU Home
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By analyzing existing cross correlation between Shenzhen Silver Basis and AUPU Home Style, you can compare the effects of market volatilities on Shenzhen Silver and AUPU Home 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 AUPU Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Silver and AUPU Home.
Diversification Opportunities for Shenzhen Silver and AUPU Home
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and AUPU is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Silver Basis and AUPU Home Style in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUPU Home Style 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 AUPU Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AUPU Home Style has no effect on the direction of Shenzhen Silver i.e., Shenzhen Silver and AUPU Home go up and down completely randomly.
Pair Corralation between Shenzhen Silver and AUPU Home
Assuming the 90 days trading horizon Shenzhen Silver is expected to generate 1.96 times less return on investment than AUPU Home. In addition to that, Shenzhen Silver is 2.09 times more volatile than AUPU Home Style. It trades about 0.01 of its total potential returns per unit of risk. AUPU Home Style is currently generating about 0.02 per unit of volatility. If you would invest 1,096 in AUPU Home Style on September 14, 2024 and sell it today you would earn a total of 69.00 from holding AUPU Home Style or generate 6.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.62% |
| Values | Daily Returns |
Shenzhen Silver Basis vs. AUPU Home Style
Performance |
| Timeline |
| Shenzhen Silver Basis |
| AUPU Home Style |
Shenzhen Silver and AUPU Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Silver and AUPU Home
The main advantage of trading using opposite Shenzhen Silver and AUPU Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Silver position performs unexpectedly, AUPU Home 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 AUPU Home will offset losses from the drop in AUPU Home's long position.| Shenzhen Silver vs. Jointo Energy Investment | Shenzhen Silver vs. Harbin Air Conditioning | Shenzhen Silver vs. Harbin Hatou Investment | Shenzhen Silver vs. Jiangsu Yueda Investment |
| AUPU Home vs. Qingdao Citymedia Co | AUPU Home vs. Dook Media Group | AUPU Home vs. Shenzhen Silver Basis | AUPU Home vs. Fujian Oriental Silver |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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