Correlation Between Shenzhen Bingchuan and Shenzhen MYS
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By analyzing existing cross correlation between Shenzhen Bingchuan Network and Shenzhen MYS Environmental, you can compare the effects of market volatilities on Shenzhen Bingchuan and Shenzhen MYS 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 Shenzhen Bingchuan with a short position of Shenzhen MYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bingchuan and Shenzhen MYS.
Diversification Opportunities for Shenzhen Bingchuan and Shenzhen MYS
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Shenzhen is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bingchuan Network and Shenzhen MYS Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MYS Environ and Shenzhen Bingchuan 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 Shenzhen Bingchuan Network are associated (or correlated) with Shenzhen MYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MYS Environ has no effect on the direction of Shenzhen Bingchuan i.e., Shenzhen Bingchuan and Shenzhen MYS go up and down completely randomly.
Pair Corralation between Shenzhen Bingchuan and Shenzhen MYS
Assuming the 90 days trading horizon Shenzhen Bingchuan Network is expected to generate 1.1 times more return on investment than Shenzhen MYS. However, Shenzhen Bingchuan is 1.1 times more volatile than Shenzhen MYS Environmental. It trades about 0.27 of its potential returns per unit of risk. Shenzhen MYS Environmental is currently generating about 0.16 per unit of risk. If you would invest 1,923 in Shenzhen Bingchuan Network on August 29, 2024 and sell it today you would earn a total of 564.00 from holding Shenzhen Bingchuan Network or generate 29.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Bingchuan Network vs. Shenzhen MYS Environmental
Performance |
| Timeline |
| Shenzhen Bingchuan |
| Shenzhen MYS Environ |
Shenzhen Bingchuan and Shenzhen MYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bingchuan and Shenzhen MYS
The main advantage of trading using opposite Shenzhen Bingchuan and Shenzhen MYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bingchuan position performs unexpectedly, Shenzhen MYS 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 MYS will offset losses from the drop in Shenzhen MYS's long position.| Shenzhen Bingchuan vs. GreenTech Environmental Co | Shenzhen Bingchuan vs. Ningbo MedicalSystem Biotechnology | Shenzhen Bingchuan vs. Hang Xiao Steel | Shenzhen Bingchuan vs. Guangdong Liantai Environmental |
| Shenzhen MYS vs. Gansu Yasheng Industrial | Shenzhen MYS vs. Integrated Electronic Systems | Shenzhen MYS vs. Chengtun Mining Group | Shenzhen MYS vs. Zhejiang Yayi Metal |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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