Correlation Between Super Dragon and Shenzhen SDG
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By analyzing existing cross correlation between Super Dragon Engineering Plastics and Shenzhen SDG Information, you can compare the effects of market volatilities on Super Dragon and Shenzhen SDG 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 Super Dragon with a short position of Shenzhen SDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Dragon and Shenzhen SDG.
Diversification Opportunities for Super Dragon and Shenzhen SDG
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Super and Shenzhen is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Super Dragon Engineering Plast and Shenzhen SDG Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen SDG Information and Super Dragon 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 Super Dragon Engineering Plastics are associated (or correlated) with Shenzhen SDG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen SDG Information has no effect on the direction of Super Dragon i.e., Super Dragon and Shenzhen SDG go up and down completely randomly.
Pair Corralation between Super Dragon and Shenzhen SDG
Assuming the 90 days trading horizon Super Dragon Engineering Plastics is expected to generate 0.96 times more return on investment than Shenzhen SDG. However, Super Dragon Engineering Plastics is 1.04 times less risky than Shenzhen SDG. It trades about 0.01 of its potential returns per unit of risk. Shenzhen SDG Information is currently generating about 0.01 per unit of risk. If you would invest 4,278 in Super Dragon Engineering Plastics on September 3, 2024 and sell it today you would lose (383.00) from holding Super Dragon Engineering Plastics or give up 8.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Super Dragon Engineering Plast vs. Shenzhen SDG Information
Performance |
| Timeline |
| Super Dragon Enginee |
| Shenzhen SDG Information |
Super Dragon and Shenzhen SDG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Dragon and Shenzhen SDG
The main advantage of trading using opposite Super Dragon and Shenzhen SDG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Dragon position performs unexpectedly, Shenzhen SDG 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 Shenzhen SDG will offset losses from the drop in Shenzhen SDG's long position.| Super Dragon vs. Cultural Investment Holdings | Super Dragon vs. Gome Telecom Equipment | Super Dragon vs. Bus Online Co | Super Dragon vs. Holitech Technology Co |
| Shenzhen SDG vs. Agricultural Bank of | Shenzhen SDG vs. China Construction Bank | Shenzhen SDG vs. Postal Savings Bank | Shenzhen SDG vs. Bank of Communications |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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