Correlation Between Shenzhen Silver and Beijing YanDong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Silver Basis and Beijing YanDong MicroElectronic, you can compare the effects of market volatilities on Shenzhen Silver and Beijing YanDong 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 YanDong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Silver and Beijing YanDong.
Diversification Opportunities for Shenzhen Silver and Beijing YanDong
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shenzhen and Beijing is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Silver Basis and Beijing YanDong MicroElectroni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing YanDong Micr 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 YanDong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing YanDong Micr has no effect on the direction of Shenzhen Silver i.e., Shenzhen Silver and Beijing YanDong go up and down completely randomly.
Pair Corralation between Shenzhen Silver and Beijing YanDong
Assuming the 90 days trading horizon Shenzhen Silver is expected to generate 1.61 times less return on investment than Beijing YanDong. But when comparing it to its historical volatility, Shenzhen Silver Basis is 1.1 times less risky than Beijing YanDong. It trades about 0.03 of its potential returns per unit of risk. Beijing YanDong MicroElectronic is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,708 in Beijing YanDong MicroElectronic on October 13, 2024 and sell it today you would earn a total of 265.00 from holding Beijing YanDong MicroElectronic or generate 15.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Silver Basis vs. Beijing YanDong MicroElectroni
Performance |
| Timeline |
| Shenzhen Silver Basis |
| Beijing YanDong Micr |
Shenzhen Silver and Beijing YanDong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Silver and Beijing YanDong
The main advantage of trading using opposite Shenzhen Silver and Beijing YanDong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Silver position performs unexpectedly, Beijing YanDong 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 YanDong will offset losses from the drop in Beijing YanDong's long position.| Shenzhen Silver vs. Tongxing Environmental Protection | Shenzhen Silver vs. Penyao Environmental Protection | Shenzhen Silver vs. Harbin Hatou Investment | Shenzhen Silver vs. Hunan Investment Group |
| Beijing YanDong vs. Tianjin Silvery Dragon | Beijing YanDong vs. Shenzhen Silver Basis | Beijing YanDong vs. Guangdong Silvere Sci | Beijing YanDong vs. Shenyang Blue 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |