Correlation Between Shenyang Blue and Shenzhen Silver
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By analyzing existing cross correlation between Shenyang Blue Silver and Shenzhen Silver Basis, you can compare the effects of market volatilities on Shenyang Blue and Shenzhen Silver 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 Shenzhen Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Blue and Shenzhen Silver.
Diversification Opportunities for Shenyang Blue and Shenzhen Silver
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenyang and Shenzhen is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Blue Silver and Shenzhen Silver Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Silver Basis 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 Shenzhen Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Silver Basis has no effect on the direction of Shenyang Blue i.e., Shenyang Blue and Shenzhen Silver go up and down completely randomly.
Pair Corralation between Shenyang Blue and Shenzhen Silver
Assuming the 90 days trading horizon Shenyang Blue Silver is expected to generate 1.06 times more return on investment than Shenzhen Silver. However, Shenyang Blue is 1.06 times more volatile than Shenzhen Silver Basis. It trades about -0.43 of its potential returns per unit of risk. Shenzhen Silver Basis is currently generating about -0.48 per unit of risk. If you would invest 2,810 in Shenyang Blue Silver on October 12, 2024 and sell it today you would lose (628.00) from holding Shenyang Blue Silver or give up 22.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Blue Silver vs. Shenzhen Silver Basis
Performance |
| Timeline |
| Shenyang Blue Silver |
| Shenzhen Silver Basis |
Shenyang Blue and Shenzhen Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Blue and Shenzhen Silver
The main advantage of trading using opposite Shenyang Blue and Shenzhen Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Blue position performs unexpectedly, Shenzhen Silver 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 Silver will offset losses from the drop in Shenzhen Silver'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 |
| Shenzhen Silver vs. Tongxing Environmental Protection | Shenzhen Silver vs. Penyao Environmental Protection | Shenzhen Silver vs. Harbin Hatou Investment | Shenzhen Silver vs. Hunan Investment 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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