Correlation Between Shenzhen and Beijing Enlight
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By analyzing existing cross correlation between Shenzhen AV Display Co and Beijing Enlight Media, you can compare the effects of market volatilities on Shenzhen and Beijing Enlight 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 with a short position of Beijing Enlight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen and Beijing Enlight.
Diversification Opportunities for Shenzhen and Beijing Enlight
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Beijing is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen AV Display Co and Beijing Enlight Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Enlight Media and Shenzhen 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 AV Display Co are associated (or correlated) with Beijing Enlight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Enlight Media has no effect on the direction of Shenzhen i.e., Shenzhen and Beijing Enlight go up and down completely randomly.
Pair Corralation between Shenzhen and Beijing Enlight
Assuming the 90 days trading horizon Shenzhen AV Display Co is expected to under-perform the Beijing Enlight. In addition to that, Shenzhen is 1.17 times more volatile than Beijing Enlight Media. It trades about -0.07 of its total potential returns per unit of risk. Beijing Enlight Media is currently generating about 0.09 per unit of volatility. If you would invest 883.00 in Beijing Enlight Media on October 30, 2024 and sell it today you would earn a total of 70.00 from holding Beijing Enlight Media or generate 7.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen AV Display Co vs. Beijing Enlight Media
Performance |
| Timeline |
| Shenzhen AV Display |
| Beijing Enlight Media |
Shenzhen and Beijing Enlight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen and Beijing Enlight
The main advantage of trading using opposite Shenzhen and Beijing Enlight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen position performs unexpectedly, Beijing Enlight 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 Beijing Enlight will offset losses from the drop in Beijing Enlight's long position.| Shenzhen vs. Chengdu Kanghua Biological | Shenzhen vs. Suzhou Novoprotein Scientific | Shenzhen vs. Aluminum Corp of | Shenzhen vs. COL Digital Publishing |
| Beijing Enlight vs. China State Construction | Beijing Enlight vs. Poly Real Estate | Beijing Enlight vs. China Vanke Co | Beijing Enlight vs. China Merchants Shekou |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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