Correlation Between Shenzhen Silver and Shanghai Sanyou
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By analyzing existing cross correlation between Shenzhen Silver Basis and Shanghai Sanyou Medical, you can compare the effects of market volatilities on Shenzhen Silver and Shanghai Sanyou 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 Shanghai Sanyou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Silver and Shanghai Sanyou.
Diversification Opportunities for Shenzhen Silver and Shanghai Sanyou
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Shanghai is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Silver Basis and Shanghai Sanyou Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Sanyou Medical 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 Shanghai Sanyou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Sanyou Medical has no effect on the direction of Shenzhen Silver i.e., Shenzhen Silver and Shanghai Sanyou go up and down completely randomly.
Pair Corralation between Shenzhen Silver and Shanghai Sanyou
Assuming the 90 days trading horizon Shenzhen Silver Basis is expected to generate 0.97 times more return on investment than Shanghai Sanyou. However, Shenzhen Silver Basis is 1.03 times less risky than Shanghai Sanyou. It trades about -0.13 of its potential returns per unit of risk. Shanghai Sanyou Medical is currently generating about -0.14 per unit of risk. If you would invest 953.00 in Shenzhen Silver Basis on October 30, 2024 and sell it today you would lose (75.00) from holding Shenzhen Silver Basis or give up 7.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Silver Basis vs. Shanghai Sanyou Medical
Performance |
| Timeline |
| Shenzhen Silver Basis |
| Shanghai Sanyou Medical |
Shenzhen Silver and Shanghai Sanyou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Silver and Shanghai Sanyou
The main advantage of trading using opposite Shenzhen Silver and Shanghai Sanyou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Silver position performs unexpectedly, Shanghai Sanyou 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 Shanghai Sanyou will offset losses from the drop in Shanghai Sanyou's long position.| Shenzhen Silver vs. Uroica Mining Safety | Shenzhen Silver vs. Xinjiang Baodi Mining | Shenzhen Silver vs. Bosera CMSK Industrial | Shenzhen Silver vs. Gem Year Industrial Co |
| Shanghai Sanyou vs. Agricultural Bank of | Shanghai Sanyou vs. Industrial and Commercial | Shanghai Sanyou vs. Bank of China | Shanghai Sanyou vs. China Construction Bank |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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