Correlation Between Shenzhen Inovance and Beijing Roborock
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By analyzing existing cross correlation between Shenzhen Inovance Tech and Beijing Roborock Technology, you can compare the effects of market volatilities on Shenzhen Inovance and Beijing Roborock 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 Inovance with a short position of Beijing Roborock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Inovance and Beijing Roborock.
Diversification Opportunities for Shenzhen Inovance and Beijing Roborock
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and Beijing is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Inovance Tech and Beijing Roborock Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Roborock Tec and Shenzhen Inovance 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 Inovance Tech are associated (or correlated) with Beijing Roborock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Roborock Tec has no effect on the direction of Shenzhen Inovance i.e., Shenzhen Inovance and Beijing Roborock go up and down completely randomly.
Pair Corralation between Shenzhen Inovance and Beijing Roborock
Assuming the 90 days trading horizon Shenzhen Inovance Tech is expected to generate 0.95 times more return on investment than Beijing Roborock. However, Shenzhen Inovance Tech is 1.05 times less risky than Beijing Roborock. It trades about 0.04 of its potential returns per unit of risk. Beijing Roborock Technology is currently generating about 0.02 per unit of risk. If you would invest 5,990 in Shenzhen Inovance Tech on October 17, 2024 and sell it today you would earn a total of 81.00 from holding Shenzhen Inovance Tech or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Inovance Tech vs. Beijing Roborock Technology
Performance |
| Timeline |
| Shenzhen Inovance Tech |
| Beijing Roborock Tec |
Shenzhen Inovance and Beijing Roborock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Inovance and Beijing Roborock
The main advantage of trading using opposite Shenzhen Inovance and Beijing Roborock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Inovance position performs unexpectedly, Beijing Roborock 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 Roborock will offset losses from the drop in Beijing Roborock's long position.| Shenzhen Inovance vs. Gansu Huangtai Wine marketing | Shenzhen Inovance vs. Cicc Fund Management | Shenzhen Inovance vs. Ningbo Fangzheng Automobile | Shenzhen Inovance vs. AVIC Fund Management |
| Beijing Roborock vs. Caihong Display Devices | Beijing Roborock vs. Hubei Xingfa Chemicals | Beijing Roborock vs. Yingde Greatchem Chemicals | Beijing Roborock vs. Maoming Petro Chemical Shihua |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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