Correlation Between Shandong Rike and Shenzhen Centralcon
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By analyzing existing cross correlation between Shandong Rike Chemical and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on Shandong Rike and Shenzhen Centralcon 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 Shandong Rike with a short position of Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Rike and Shenzhen Centralcon.
Diversification Opportunities for Shandong Rike and Shenzhen Centralcon
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shandong and Shenzhen is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Rike Chemical and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon and Shandong Rike 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 Shandong Rike Chemical are associated (or correlated) with Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of Shandong Rike i.e., Shandong Rike and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between Shandong Rike and Shenzhen Centralcon
Assuming the 90 days trading horizon Shandong Rike Chemical is expected to generate 0.81 times more return on investment than Shenzhen Centralcon. However, Shandong Rike Chemical is 1.23 times less risky than Shenzhen Centralcon. It trades about 0.0 of its potential returns per unit of risk. Shenzhen Centralcon Investment is currently generating about -0.03 per unit of risk. If you would invest 675.00 in Shandong Rike Chemical on October 18, 2024 and sell it today you would lose (110.00) from holding Shandong Rike Chemical or give up 16.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Rike Chemical vs. Shenzhen Centralcon Investment
Performance |
| Timeline |
| Shandong Rike Chemical |
| Shenzhen Centralcon |
Shandong Rike and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Rike and Shenzhen Centralcon
The main advantage of trading using opposite Shandong Rike and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Rike position performs unexpectedly, Shenzhen Centralcon 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 Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.| Shandong Rike vs. Zijin Mining Group | Shandong Rike vs. Wanhua Chemical Group | Shandong Rike vs. Baoshan Iron Steel | Shandong Rike vs. Shandong Gold Mining |
| Shenzhen Centralcon vs. Shenzhen Noposion Agrochemicals | Shenzhen Centralcon vs. Tibet Huayu Mining | Shenzhen Centralcon vs. Shandong Rike Chemical | Shenzhen Centralcon vs. Jinsanjiang Silicon Material |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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