Correlation Between Porton Fine and Shenzhen Centralcon
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By analyzing existing cross correlation between Porton Fine Chemicals and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on Porton Fine 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 Porton Fine with a short position of Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Porton Fine and Shenzhen Centralcon.
Diversification Opportunities for Porton Fine and Shenzhen Centralcon
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Porton and Shenzhen is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Porton Fine Chemicals and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon and Porton Fine 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 Porton Fine Chemicals 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 Porton Fine i.e., Porton Fine and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between Porton Fine and Shenzhen Centralcon
Assuming the 90 days trading horizon Porton Fine Chemicals is expected to generate 0.59 times more return on investment than Shenzhen Centralcon. However, Porton Fine Chemicals is 1.69 times less risky than Shenzhen Centralcon. It trades about -0.33 of its potential returns per unit of risk. Shenzhen Centralcon Investment is currently generating about -0.34 per unit of risk. If you would invest 1,750 in Porton Fine Chemicals on October 17, 2024 and sell it today you would lose (230.00) from holding Porton Fine Chemicals or give up 13.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Porton Fine Chemicals vs. Shenzhen Centralcon Investment
Performance |
| Timeline |
| Porton Fine Chemicals |
| Shenzhen Centralcon |
Porton Fine and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Porton Fine and Shenzhen Centralcon
The main advantage of trading using opposite Porton Fine and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Porton Fine 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.| Porton Fine vs. Haima Automobile Group | Porton Fine vs. Changchun Engley Automobile | Porton Fine vs. Huaxia Fund Management | Porton Fine vs. Anhui Jianghuai Automobile |
| Shenzhen Centralcon vs. China Mobile Limited | Shenzhen Centralcon vs. Juneyao Airlines | Shenzhen Centralcon vs. Porton Fine Chemicals | Shenzhen Centralcon vs. Ningbo Fangzheng Automobile |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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