Correlation Between Wonders Information and Shenzhen Glory
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By analyzing existing cross correlation between Wonders Information and Shenzhen Glory Medical, you can compare the effects of market volatilities on Wonders Information and Shenzhen Glory 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 Wonders Information with a short position of Shenzhen Glory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wonders Information and Shenzhen Glory.
Diversification Opportunities for Wonders Information and Shenzhen Glory
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wonders and Shenzhen is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Wonders Information and Shenzhen Glory Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Glory Medical and Wonders Information 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 Wonders Information are associated (or correlated) with Shenzhen Glory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Glory Medical has no effect on the direction of Wonders Information i.e., Wonders Information and Shenzhen Glory go up and down completely randomly.
Pair Corralation between Wonders Information and Shenzhen Glory
Assuming the 90 days trading horizon Wonders Information is expected to under-perform the Shenzhen Glory. In addition to that, Wonders Information is 1.33 times more volatile than Shenzhen Glory Medical. It trades about -0.15 of its total potential returns per unit of risk. Shenzhen Glory Medical is currently generating about -0.16 per unit of volatility. If you would invest 318.00 in Shenzhen Glory Medical on October 28, 2024 and sell it today you would lose (25.00) from holding Shenzhen Glory Medical or give up 7.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wonders Information vs. Shenzhen Glory Medical
Performance |
| Timeline |
| Wonders Information |
| Shenzhen Glory Medical |
Wonders Information and Shenzhen Glory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wonders Information and Shenzhen Glory
The main advantage of trading using opposite Wonders Information and Shenzhen Glory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wonders Information position performs unexpectedly, Shenzhen Glory 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 Glory will offset losses from the drop in Shenzhen Glory's long position.| Wonders Information vs. Shanghai Phichem Material | Wonders Information vs. Andon Health Co | Wonders Information vs. Guangzhou Tinci Materials | Wonders Information vs. Jiangnan Mould Plastic |
| Shenzhen Glory vs. China Petroleum Chemical | Shenzhen Glory vs. PetroChina Co Ltd | Shenzhen Glory vs. China State Construction | Shenzhen Glory vs. China Railway Group |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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