Correlation Between Shenzhen Bioeasy and Fuyao Glass
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By analyzing existing cross correlation between Shenzhen Bioeasy Biotechnology and Fuyao Glass Industry, you can compare the effects of market volatilities on Shenzhen Bioeasy and Fuyao Glass 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 Bioeasy with a short position of Fuyao Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bioeasy and Fuyao Glass.
Diversification Opportunities for Shenzhen Bioeasy and Fuyao Glass
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and Fuyao is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bioeasy Biotechnology and Fuyao Glass Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuyao Glass Industry and Shenzhen Bioeasy 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 Bioeasy Biotechnology are associated (or correlated) with Fuyao Glass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuyao Glass Industry has no effect on the direction of Shenzhen Bioeasy i.e., Shenzhen Bioeasy and Fuyao Glass go up and down completely randomly.
Pair Corralation between Shenzhen Bioeasy and Fuyao Glass
Assuming the 90 days trading horizon Shenzhen Bioeasy Biotechnology is expected to generate 1.45 times more return on investment than Fuyao Glass. However, Shenzhen Bioeasy is 1.45 times more volatile than Fuyao Glass Industry. It trades about 0.07 of its potential returns per unit of risk. Fuyao Glass Industry is currently generating about -0.25 per unit of risk. If you would invest 851.00 in Shenzhen Bioeasy Biotechnology on November 29, 2024 and sell it today you would earn a total of 13.00 from holding Shenzhen Bioeasy Biotechnology or generate 1.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Bioeasy Biotechnology vs. Fuyao Glass Industry
Performance |
| Timeline |
| Shenzhen Bioeasy Bio |
| Fuyao Glass Industry |
Shenzhen Bioeasy and Fuyao Glass Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bioeasy and Fuyao Glass
The main advantage of trading using opposite Shenzhen Bioeasy and Fuyao Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bioeasy position performs unexpectedly, Fuyao Glass 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 Fuyao Glass will offset losses from the drop in Fuyao Glass' long position.| Shenzhen Bioeasy vs. Anhui Tongguan Copper | Shenzhen Bioeasy vs. Shanghai Yanpu Metal | Shenzhen Bioeasy vs. Western Metal Materials | Shenzhen Bioeasy vs. Citic Offshore Helicopter |
| Fuyao Glass vs. Heilongjiang Transport Development | Fuyao Glass vs. Shuhua Sports Co | Fuyao Glass vs. Central China Land | Fuyao Glass vs. Changjiang Publishing Media |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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