Correlation Between Shenzhen and SAIC
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By analyzing existing cross correlation between Shenzhen AV Display Co and SAIC Motor Corp, you can compare the effects of market volatilities on Shenzhen and SAIC 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 SAIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen and SAIC.
Diversification Opportunities for Shenzhen and SAIC
Very weak diversification
The 3 months correlation between Shenzhen and SAIC is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen AV Display Co and SAIC Motor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAIC Motor Corp 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 SAIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAIC Motor Corp has no effect on the direction of Shenzhen i.e., Shenzhen and SAIC go up and down completely randomly.
Pair Corralation between Shenzhen and SAIC
Assuming the 90 days trading horizon Shenzhen AV Display Co is expected to generate 1.9 times more return on investment than SAIC. However, Shenzhen is 1.9 times more volatile than SAIC Motor Corp. It trades about 0.02 of its potential returns per unit of risk. SAIC Motor Corp is currently generating about 0.03 per unit of risk. If you would invest 2,976 in Shenzhen AV Display Co on October 15, 2024 and sell it today you would lose (75.00) from holding Shenzhen AV Display Co or give up 2.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen AV Display Co vs. SAIC Motor Corp
Performance |
| Timeline |
| Shenzhen AV Display |
| SAIC Motor Corp |
Shenzhen and SAIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen and SAIC
The main advantage of trading using opposite Shenzhen and SAIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen position performs unexpectedly, SAIC 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 SAIC will offset losses from the drop in SAIC's long position.| Shenzhen vs. Shandong Sanyuan Biotechnology | Shenzhen vs. Ningbo MedicalSystem Biotechnology | Shenzhen vs. Universal Scientific Industrial | Shenzhen vs. Guangdong Jingyi Metal |
| SAIC vs. Chengdu Kanghua Biological | SAIC vs. Beijing Wantai Biological | SAIC vs. Suzhou Novoprotein Scientific | SAIC vs. Aluminum Corp of |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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