Correlation Between Shantou Wanshun and Shenzhen Clou
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By analyzing existing cross correlation between Shantou Wanshun Package and Shenzhen Clou Electronics, you can compare the effects of market volatilities on Shantou Wanshun and Shenzhen Clou 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 Shantou Wanshun with a short position of Shenzhen Clou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantou Wanshun and Shenzhen Clou.
Diversification Opportunities for Shantou Wanshun and Shenzhen Clou
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shantou and Shenzhen is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Shantou Wanshun Package and Shenzhen Clou Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Clou Electronics and Shantou Wanshun 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 Shantou Wanshun Package are associated (or correlated) with Shenzhen Clou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Clou Electronics has no effect on the direction of Shantou Wanshun i.e., Shantou Wanshun and Shenzhen Clou go up and down completely randomly.
Pair Corralation between Shantou Wanshun and Shenzhen Clou
Assuming the 90 days trading horizon Shantou Wanshun Package is expected to generate 0.58 times more return on investment than Shenzhen Clou. However, Shantou Wanshun Package is 1.71 times less risky than Shenzhen Clou. It trades about -0.49 of its potential returns per unit of risk. Shenzhen Clou Electronics is currently generating about -0.3 per unit of risk. If you would invest 555.00 in Shantou Wanshun Package on October 15, 2024 and sell it today you would lose (111.00) from holding Shantou Wanshun Package or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shantou Wanshun Package vs. Shenzhen Clou Electronics
Performance |
| Timeline |
| Shantou Wanshun Package |
| Shenzhen Clou Electronics |
Shantou Wanshun and Shenzhen Clou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shantou Wanshun and Shenzhen Clou
The main advantage of trading using opposite Shantou Wanshun and Shenzhen Clou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantou Wanshun position performs unexpectedly, Shenzhen Clou 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 Clou will offset losses from the drop in Shenzhen Clou's long position.| Shantou Wanshun vs. Lutian Machinery Co | Shantou Wanshun vs. China Sports Industry | Shantou Wanshun vs. Ningbo Construction Co | Shantou Wanshun vs. Gifore Agricultural Machinery |
| Shenzhen Clou vs. Jinxiandai Information Industry | Shenzhen Clou vs. Hangzhou Gisway Information | Shenzhen Clou vs. Longmaster Information Tech | Shenzhen Clou vs. Sinomach Automobile Co |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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