Correlation Between BlueFocus Communication and Shenzhen SDG
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By analyzing existing cross correlation between BlueFocus Communication Group and Shenzhen SDG Information, you can compare the effects of market volatilities on BlueFocus Communication and Shenzhen SDG 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 BlueFocus Communication with a short position of Shenzhen SDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlueFocus Communication and Shenzhen SDG.
Diversification Opportunities for BlueFocus Communication and Shenzhen SDG
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BlueFocus and Shenzhen is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding BlueFocus Communication Group and Shenzhen SDG Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen SDG Information and BlueFocus Communication 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 BlueFocus Communication Group are associated (or correlated) with Shenzhen SDG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen SDG Information has no effect on the direction of BlueFocus Communication i.e., BlueFocus Communication and Shenzhen SDG go up and down completely randomly.
Pair Corralation between BlueFocus Communication and Shenzhen SDG
Assuming the 90 days trading horizon BlueFocus Communication Group is expected to generate 2.94 times more return on investment than Shenzhen SDG. However, BlueFocus Communication is 2.94 times more volatile than Shenzhen SDG Information. It trades about 0.16 of its potential returns per unit of risk. Shenzhen SDG Information is currently generating about 0.0 per unit of risk. If you would invest 954.00 in BlueFocus Communication Group on September 13, 2024 and sell it today you would earn a total of 199.00 from holding BlueFocus Communication Group or generate 20.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BlueFocus Communication Group vs. Shenzhen SDG Information
Performance |
| Timeline |
| BlueFocus Communication |
| Shenzhen SDG Information |
BlueFocus Communication and Shenzhen SDG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlueFocus Communication and Shenzhen SDG
The main advantage of trading using opposite BlueFocus Communication and Shenzhen SDG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlueFocus Communication position performs unexpectedly, Shenzhen SDG 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 SDG will offset losses from the drop in Shenzhen SDG's long position.| BlueFocus Communication vs. BYD Co Ltd | BlueFocus Communication vs. China Mobile Limited | BlueFocus Communication vs. Agricultural Bank of | BlueFocus Communication vs. Industrial and Commercial |
| Shenzhen SDG vs. Industrial and Commercial | Shenzhen SDG vs. China Construction Bank | Shenzhen SDG vs. Bank of China | Shenzhen SDG vs. Agricultural Bank of |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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