Correlation Between 159681 and Shenzhen Bingchuan
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By analyzing existing cross correlation between 159681 and Shenzhen Bingchuan Network, you can compare the effects of market volatilities on 159681 and Shenzhen Bingchuan 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 Bingchuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and Shenzhen Bingchuan.
Diversification Opportunities for 159681 and Shenzhen Bingchuan
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 159681 and Shenzhen is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding 159681 and Shenzhen Bingchuan Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Bingchuan 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 Bingchuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Bingchuan has no effect on the direction of 159681 i.e., 159681 and Shenzhen Bingchuan go up and down completely randomly.
Pair Corralation between 159681 and Shenzhen Bingchuan
Assuming the 90 days trading horizon 159681 is expected to generate 12.93 times less return on investment than Shenzhen Bingchuan. But when comparing it to its historical volatility, 159681 is 1.62 times less risky than Shenzhen Bingchuan. It trades about 0.03 of its potential returns per unit of risk. Shenzhen Bingchuan Network is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,771 in Shenzhen Bingchuan Network on August 25, 2024 and sell it today you would earn a total of 425.00 from holding Shenzhen Bingchuan Network or generate 24.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159681 vs. Shenzhen Bingchuan Network
Performance |
| Timeline |
| 159681 |
| Shenzhen Bingchuan |
159681 and Shenzhen Bingchuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159681 and Shenzhen Bingchuan
The main advantage of trading using opposite 159681 and Shenzhen Bingchuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 position performs unexpectedly, Shenzhen Bingchuan 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 Bingchuan will offset losses from the drop in Shenzhen Bingchuan's long position.| 159681 vs. Shenzhen MTC Co | 159681 vs. Ming Yang Smart | 159681 vs. Changzhou Almaden Co | 159681 vs. 159005 |
| Shenzhen Bingchuan vs. Ming Yang Smart | Shenzhen Bingchuan vs. 159681 | Shenzhen Bingchuan vs. 159005 | Shenzhen Bingchuan vs. Loctek Ergonomic Technology |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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