Correlation Between Shenzhen Bingchuan and Chengdu Spaceon
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By analyzing existing cross correlation between Shenzhen Bingchuan Network and Chengdu Spaceon Electronics, you can compare the effects of market volatilities on Shenzhen Bingchuan and Chengdu Spaceon 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 Chengdu Spaceon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bingchuan and Chengdu Spaceon.
Diversification Opportunities for Shenzhen Bingchuan and Chengdu Spaceon
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Chengdu is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bingchuan Network and Chengdu Spaceon Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Spaceon Elec 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 Chengdu Spaceon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Spaceon Elec has no effect on the direction of Shenzhen Bingchuan i.e., Shenzhen Bingchuan and Chengdu Spaceon go up and down completely randomly.
Pair Corralation between Shenzhen Bingchuan and Chengdu Spaceon
Assuming the 90 days trading horizon Shenzhen Bingchuan Network is expected to generate 1.3 times more return on investment than Chengdu Spaceon. However, Shenzhen Bingchuan is 1.3 times more volatile than Chengdu Spaceon Electronics. It trades about 0.09 of its potential returns per unit of risk. Chengdu Spaceon Electronics is currently generating about 0.05 per unit of risk. If you would invest 1,599 in Shenzhen Bingchuan Network on August 31, 2024 and sell it today you would earn a total of 734.00 from holding Shenzhen Bingchuan Network or generate 45.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Bingchuan Network vs. Chengdu Spaceon Electronics
Performance |
| Timeline |
| Shenzhen Bingchuan |
| Chengdu Spaceon Elec |
Shenzhen Bingchuan and Chengdu Spaceon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bingchuan and Chengdu Spaceon
The main advantage of trading using opposite Shenzhen Bingchuan and Chengdu Spaceon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bingchuan position performs unexpectedly, Chengdu Spaceon 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 Chengdu Spaceon will offset losses from the drop in Chengdu Spaceon's long position.| Shenzhen Bingchuan vs. Anhui Deli Household | Shenzhen Bingchuan vs. Beijing Mainstreets Investment | Shenzhen Bingchuan vs. China Asset Management | Shenzhen Bingchuan vs. Vanfund Urban Investment |
| Chengdu Spaceon vs. MayAir Technology Co | Chengdu Spaceon vs. Guangzhou Dongfang Hotel | Chengdu Spaceon vs. Sanbo Hospital Management | Chengdu Spaceon vs. De Rucci Healthy |
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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