Correlation Between Shenyang Blue and Masterwork Machinery
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By analyzing existing cross correlation between Shenyang Blue Silver and Masterwork Machinery, you can compare the effects of market volatilities on Shenyang Blue and Masterwork Machinery 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 Masterwork Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Blue and Masterwork Machinery.
Diversification Opportunities for Shenyang Blue and Masterwork Machinery
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenyang and Masterwork is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Blue Silver and Masterwork Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Masterwork Machinery 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 Masterwork Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Masterwork Machinery has no effect on the direction of Shenyang Blue i.e., Shenyang Blue and Masterwork Machinery go up and down completely randomly.
Pair Corralation between Shenyang Blue and Masterwork Machinery
Assuming the 90 days trading horizon Shenyang Blue is expected to generate 3.4 times less return on investment than Masterwork Machinery. But when comparing it to its historical volatility, Shenyang Blue Silver is 1.16 times less risky than Masterwork Machinery. It trades about 0.07 of its potential returns per unit of risk. Masterwork Machinery is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 514.00 in Masterwork Machinery on November 6, 2024 and sell it today you would earn a total of 46.00 from holding Masterwork Machinery or generate 8.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Blue Silver vs. Masterwork Machinery
Performance |
| Timeline |
| Shenyang Blue Silver |
| Masterwork Machinery |
Shenyang Blue and Masterwork Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Blue and Masterwork Machinery
The main advantage of trading using opposite Shenyang Blue and Masterwork Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Blue position performs unexpectedly, Masterwork Machinery 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 Masterwork Machinery will offset losses from the drop in Masterwork Machinery's long position.| Shenyang Blue vs. Agricultural Bank of | Shenyang Blue vs. Industrial and Commercial | Shenyang Blue vs. Bank of China | Shenyang Blue vs. PetroChina Co Ltd |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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