Correlation Between Shenzhen and Porton Fine
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By analyzing existing cross correlation between Shenzhen AV Display Co and Porton Fine Chemicals, you can compare the effects of market volatilities on Shenzhen and Porton Fine 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 Porton Fine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen and Porton Fine.
Diversification Opportunities for Shenzhen and Porton Fine
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shenzhen and Porton is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen AV Display Co and Porton Fine Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Porton Fine Chemicals 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 Porton Fine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Porton Fine Chemicals has no effect on the direction of Shenzhen i.e., Shenzhen and Porton Fine go up and down completely randomly.
Pair Corralation between Shenzhen and Porton Fine
Assuming the 90 days trading horizon Shenzhen AV Display Co is expected to under-perform the Porton Fine. In addition to that, Shenzhen is 1.95 times more volatile than Porton Fine Chemicals. It trades about -0.25 of its total potential returns per unit of risk. Porton Fine Chemicals is currently generating about -0.45 per unit of volatility. If you would invest 1,750 in Porton Fine Chemicals on October 16, 2024 and sell it today you would lose (263.00) from holding Porton Fine Chemicals or give up 15.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen AV Display Co vs. Porton Fine Chemicals
Performance |
| Timeline |
| Shenzhen AV Display |
| Porton Fine Chemicals |
Shenzhen and Porton Fine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen and Porton Fine
The main advantage of trading using opposite Shenzhen and Porton Fine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen position performs unexpectedly, Porton Fine 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 Porton Fine will offset losses from the drop in Porton Fine's long position.| Shenzhen vs. Pengxin International Mining | Shenzhen vs. Xinjiang Baodi Mining | Shenzhen vs. Glodon Software Co | Shenzhen vs. Beijing Baolande Software |
| Porton Fine vs. XiaMen HongXin Electron tech | Porton Fine vs. Kuang Chi Technologies | Porton Fine vs. HanS Laser Tech | Porton Fine vs. Sichuan Hebang Biotechnology |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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