Correlation Between Shenzhen Bingchuan and Shanghai Yaoji
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By analyzing existing cross correlation between Shenzhen Bingchuan Network and Shanghai Yaoji Playing, you can compare the effects of market volatilities on Shenzhen Bingchuan and Shanghai Yaoji 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 Shanghai Yaoji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bingchuan and Shanghai Yaoji.
Diversification Opportunities for Shenzhen Bingchuan and Shanghai Yaoji
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Shanghai is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bingchuan Network and Shanghai Yaoji Playing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yaoji Playing 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 Shanghai Yaoji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yaoji Playing has no effect on the direction of Shenzhen Bingchuan i.e., Shenzhen Bingchuan and Shanghai Yaoji go up and down completely randomly.
Pair Corralation between Shenzhen Bingchuan and Shanghai Yaoji
Assuming the 90 days trading horizon Shenzhen Bingchuan Network is expected to generate 1.07 times more return on investment than Shanghai Yaoji. However, Shenzhen Bingchuan is 1.07 times more volatile than Shanghai Yaoji Playing. It trades about 0.27 of its potential returns per unit of risk. Shanghai Yaoji Playing is currently generating about 0.09 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Bingchuan Network vs. Shanghai Yaoji Playing
Performance |
| Timeline |
| Shenzhen Bingchuan |
| Shanghai Yaoji Playing |
Shenzhen Bingchuan and Shanghai Yaoji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bingchuan and Shanghai Yaoji
The main advantage of trading using opposite Shenzhen Bingchuan and Shanghai Yaoji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bingchuan position performs unexpectedly, Shanghai Yaoji 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 Shanghai Yaoji will offset losses from the drop in Shanghai Yaoji'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 |
| Shanghai Yaoji vs. Shenzhen MYS Environmental | Shanghai Yaoji vs. AVIC Fund Management | Shanghai Yaoji vs. Shenzhen Bingchuan Network | Shanghai Yaoji vs. Penghua Shenzhen Energy |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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