Correlation Between Shenyang Blue and Sichuan Newsnet
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By analyzing existing cross correlation between Shenyang Blue Silver and Sichuan Newsnet Media, you can compare the effects of market volatilities on Shenyang Blue and Sichuan Newsnet 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 Sichuan Newsnet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Blue and Sichuan Newsnet.
Diversification Opportunities for Shenyang Blue and Sichuan Newsnet
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenyang and Sichuan is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Blue Silver and Sichuan Newsnet Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Newsnet Media 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 Sichuan Newsnet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Newsnet Media has no effect on the direction of Shenyang Blue i.e., Shenyang Blue and Sichuan Newsnet go up and down completely randomly.
Pair Corralation between Shenyang Blue and Sichuan Newsnet
Assuming the 90 days trading horizon Shenyang Blue Silver is expected to under-perform the Sichuan Newsnet. But the stock apears to be less risky and, when comparing its historical volatility, Shenyang Blue Silver is 1.65 times less risky than Sichuan Newsnet. The stock trades about -0.06 of its potential returns per unit of risk. The Sichuan Newsnet Media is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,401 in Sichuan Newsnet Media on November 3, 2024 and sell it today you would earn a total of 123.00 from holding Sichuan Newsnet Media or generate 8.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Blue Silver vs. Sichuan Newsnet Media
Performance |
| Timeline |
| Shenyang Blue Silver |
| Sichuan Newsnet Media |
Shenyang Blue and Sichuan Newsnet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Blue and Sichuan Newsnet
The main advantage of trading using opposite Shenyang Blue and Sichuan Newsnet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Blue position performs unexpectedly, Sichuan Newsnet 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 Sichuan Newsnet will offset losses from the drop in Sichuan Newsnet's long position.| Shenyang Blue vs. Bus Online Co | Shenyang Blue vs. Guosheng Financial Holding | Shenyang Blue vs. Agricultural Bank of | Shenyang Blue vs. Hua Xia Bank |
| Sichuan Newsnet vs. Cambricon Technologies Corp | Sichuan Newsnet vs. SGSG Sciencetechnology Co | Sichuan Newsnet vs. Loongson Technology Corp | Sichuan Newsnet vs. Zhonghang Electronic Measuring |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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