Correlation Between Shenzhen and Xinjiang Sailing
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By analyzing existing cross correlation between Shenzhen AV Display Co and Xinjiang Sailing Information, you can compare the effects of market volatilities on Shenzhen and Xinjiang Sailing 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 Xinjiang Sailing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen and Xinjiang Sailing.
Diversification Opportunities for Shenzhen and Xinjiang Sailing
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Xinjiang is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen AV Display Co and Xinjiang Sailing Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Sailing Inf 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 Xinjiang Sailing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Sailing Inf has no effect on the direction of Shenzhen i.e., Shenzhen and Xinjiang Sailing go up and down completely randomly.
Pair Corralation between Shenzhen and Xinjiang Sailing
Assuming the 90 days trading horizon Shenzhen is expected to generate 1.8 times less return on investment than Xinjiang Sailing. But when comparing it to its historical volatility, Shenzhen AV Display Co is 1.35 times less risky than Xinjiang Sailing. It trades about 0.06 of its potential returns per unit of risk. Xinjiang Sailing Information is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 610.00 in Xinjiang Sailing Information on November 3, 2024 and sell it today you would earn a total of 628.00 from holding Xinjiang Sailing Information or generate 102.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen AV Display Co vs. Xinjiang Sailing Information
Performance |
| Timeline |
| Shenzhen AV Display |
| Xinjiang Sailing Inf |
Shenzhen and Xinjiang Sailing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen and Xinjiang Sailing
The main advantage of trading using opposite Shenzhen and Xinjiang Sailing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen position performs unexpectedly, Xinjiang Sailing 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 Xinjiang Sailing will offset losses from the drop in Xinjiang Sailing's long position.| Shenzhen vs. China Asset Management | Shenzhen vs. Harvest Fund Management | Shenzhen vs. Do Fluoride Chemicals Co | Shenzhen vs. Guangdong Marubi Biotechnology |
| Xinjiang Sailing vs. Industrial and Commercial | Xinjiang Sailing vs. Kweichow Moutai Co | Xinjiang Sailing vs. Agricultural Bank of | Xinjiang Sailing vs. China Mobile Limited |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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