Correlation Between 159681 and Shenzhen Silver
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By analyzing existing cross correlation between 159681 and Shenzhen Silver Basis, you can compare the effects of market volatilities on 159681 and Shenzhen Silver 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 159681 with a short position of Shenzhen Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and Shenzhen Silver.
Diversification Opportunities for 159681 and Shenzhen Silver
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 159681 and Shenzhen is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding 159681 and Shenzhen Silver Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Silver Basis and 159681 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 159681 are associated (or correlated) with Shenzhen Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Silver Basis has no effect on the direction of 159681 i.e., 159681 and Shenzhen Silver go up and down completely randomly.
Pair Corralation between 159681 and Shenzhen Silver
Assuming the 90 days trading horizon 159681 is expected to generate 0.56 times more return on investment than Shenzhen Silver. However, 159681 is 1.79 times less risky than Shenzhen Silver. It trades about -0.15 of its potential returns per unit of risk. Shenzhen Silver Basis is currently generating about -0.14 per unit of risk. If you would invest 96.00 in 159681 on October 22, 2024 and sell it today you would lose (5.00) from holding 159681 or give up 5.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
159681 vs. Shenzhen Silver Basis
Performance |
| Timeline |
| 159681 |
| Shenzhen Silver Basis |
159681 and Shenzhen Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159681 and Shenzhen Silver
The main advantage of trading using opposite 159681 and Shenzhen Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 position performs unexpectedly, Shenzhen Silver 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 Shenzhen Silver will offset losses from the drop in Shenzhen Silver's long position.The idea behind 159681 and Shenzhen Silver Basis pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Shenzhen Silver vs. Western Metal Materials | Shenzhen Silver vs. Wuhan Yangtze Communication | Shenzhen Silver vs. Bosera CMSK Industrial | Shenzhen Silver vs. Nanjing Putian Telecommunications |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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