Correlation Between Shenyang Blue and Chenzhou Jingui
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By analyzing existing cross correlation between Shenyang Blue Silver and Chenzhou Jingui Silver, you can compare the effects of market volatilities on Shenyang Blue and Chenzhou Jingui 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 Shenyang Blue with a short position of Chenzhou Jingui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Blue and Chenzhou Jingui.
Diversification Opportunities for Shenyang Blue and Chenzhou Jingui
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shenyang and Chenzhou is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Blue Silver and Chenzhou Jingui Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chenzhou Jingui Silver and Shenyang Blue 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 Shenyang Blue Silver are associated (or correlated) with Chenzhou Jingui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chenzhou Jingui Silver has no effect on the direction of Shenyang Blue i.e., Shenyang Blue and Chenzhou Jingui go up and down completely randomly.
Pair Corralation between Shenyang Blue and Chenzhou Jingui
Assuming the 90 days trading horizon Shenyang Blue Silver is expected to under-perform the Chenzhou Jingui. In addition to that, Shenyang Blue is 1.16 times more volatile than Chenzhou Jingui Silver. It trades about -0.43 of its total potential returns per unit of risk. Chenzhou Jingui Silver is currently generating about -0.31 per unit of volatility. If you would invest 402.00 in Chenzhou Jingui Silver on October 12, 2024 and sell it today you would lose (58.00) from holding Chenzhou Jingui Silver or give up 14.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Blue Silver vs. Chenzhou Jingui Silver
Performance |
| Timeline |
| Shenyang Blue Silver |
| Chenzhou Jingui Silver |
Shenyang Blue and Chenzhou Jingui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Blue and Chenzhou Jingui
The main advantage of trading using opposite Shenyang Blue and Chenzhou Jingui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Blue position performs unexpectedly, Chenzhou Jingui 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 Chenzhou Jingui will offset losses from the drop in Chenzhou Jingui's long position.| Shenyang Blue vs. Biwin Storage Technology | Shenyang Blue vs. PetroChina Co Ltd | Shenyang Blue vs. Industrial and Commercial | Shenyang Blue vs. China Construction Bank |
| Chenzhou Jingui vs. Semiconductor Manufacturing Intl | Chenzhou Jingui vs. Malion New Materials | Chenzhou Jingui vs. Will Semiconductor Co | Chenzhou Jingui vs. Ingenic Semiconductor |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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