Correlation Between Shenzhen and V V
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By analyzing existing cross correlation between Shenzhen AV Display Co and V V Food, you can compare the effects of market volatilities on Shenzhen and V V 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 V V. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen and V V.
Diversification Opportunities for Shenzhen and V V
Very poor diversification
The 3 months correlation between Shenzhen and 600300 is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen AV Display Co and V V Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on V V Food 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 V V. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of V V Food has no effect on the direction of Shenzhen i.e., Shenzhen and V V go up and down completely randomly.
Pair Corralation between Shenzhen and V V
Assuming the 90 days trading horizon Shenzhen AV Display Co is expected to generate 1.68 times more return on investment than V V. However, Shenzhen is 1.68 times more volatile than V V Food. It trades about 0.17 of its potential returns per unit of risk. V V Food is currently generating about 0.21 per unit of risk. If you would invest 3,040 in Shenzhen AV Display Co on September 5, 2024 and sell it today you would earn a total of 379.00 from holding Shenzhen AV Display Co or generate 12.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shenzhen AV Display Co vs. V V Food
Performance |
| Timeline |
| Shenzhen AV Display |
| V V Food |
Shenzhen and V V Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen and V V
The main advantage of trading using opposite Shenzhen and V V positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen position performs unexpectedly, V V 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 V V will offset losses from the drop in V V's long position.| Shenzhen vs. Elite Color Environmental | Shenzhen vs. Tianjin Capital Environmental | Shenzhen vs. Wuhan Yangtze Communication | Shenzhen vs. Anhui Fuhuang Steel |
| V V vs. Poly Real Estate | V V vs. China Vanke Co | V V vs. China Merchants Shekou | V V vs. Huafa Industrial Co |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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