Correlation Between Shenzhen Bingchuan and Chengdu B
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By analyzing existing cross correlation between Shenzhen Bingchuan Network and Chengdu B ray Media, you can compare the effects of market volatilities on Shenzhen Bingchuan and Chengdu B 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 B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bingchuan and Chengdu B.
Diversification Opportunities for Shenzhen Bingchuan and Chengdu B
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Chengdu is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bingchuan Network and Chengdu B ray Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu B ray 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 B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu B ray has no effect on the direction of Shenzhen Bingchuan i.e., Shenzhen Bingchuan and Chengdu B go up and down completely randomly.
Pair Corralation between Shenzhen Bingchuan and Chengdu B
Assuming the 90 days trading horizon Shenzhen Bingchuan Network is expected to generate 1.58 times more return on investment than Chengdu B. However, Shenzhen Bingchuan is 1.58 times more volatile than Chengdu B ray Media. It trades about 0.32 of its potential returns per unit of risk. Chengdu B ray Media is currently generating about 0.16 per unit of risk. If you would invest 1,842 in Shenzhen Bingchuan Network on August 30, 2024 and sell it today you would earn a total of 649.00 from holding Shenzhen Bingchuan Network or generate 35.23% 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. Chengdu B ray Media
Performance |
| Timeline |
| Shenzhen Bingchuan |
| Chengdu B ray |
Shenzhen Bingchuan and Chengdu B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bingchuan and Chengdu B
The main advantage of trading using opposite Shenzhen Bingchuan and Chengdu B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bingchuan position performs unexpectedly, Chengdu B 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 B will offset losses from the drop in Chengdu B's long position.| Shenzhen Bingchuan vs. Shandong Longquan Pipeline | Shenzhen Bingchuan vs. Huitong Construction Group | Shenzhen Bingchuan vs. Zhejiang Qianjiang Motorcycle | Shenzhen Bingchuan vs. Anhui Jianghuai Automobile |
| Chengdu B vs. Chengdu Spaceon Electronics | Chengdu B vs. CICC Fund Management | Chengdu B vs. AVIC Fund Management | Chengdu B vs. Xiangtan Electrochemical Scientific |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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