Correlation Between Shenzhen Hans and Sichuan Qiaoyuan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Hans CNC and Sichuan Qiaoyuan Gas, you can compare the effects of market volatilities on Shenzhen Hans and Sichuan Qiaoyuan 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 Hans with a short position of Sichuan Qiaoyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hans and Sichuan Qiaoyuan.
Diversification Opportunities for Shenzhen Hans and Sichuan Qiaoyuan
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenzhen and Sichuan is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hans CNC and Sichuan Qiaoyuan Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Qiaoyuan Gas and Shenzhen Hans 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 Hans CNC are associated (or correlated) with Sichuan Qiaoyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Qiaoyuan Gas has no effect on the direction of Shenzhen Hans i.e., Shenzhen Hans and Sichuan Qiaoyuan go up and down completely randomly.
Pair Corralation between Shenzhen Hans and Sichuan Qiaoyuan
Assuming the 90 days trading horizon Shenzhen Hans CNC is expected to generate 1.15 times more return on investment than Sichuan Qiaoyuan. However, Shenzhen Hans is 1.15 times more volatile than Sichuan Qiaoyuan Gas. It trades about 0.3 of its potential returns per unit of risk. Sichuan Qiaoyuan Gas is currently generating about -0.16 per unit of risk. If you would invest 3,360 in Shenzhen Hans CNC on November 7, 2024 and sell it today you would earn a total of 446.00 from holding Shenzhen Hans CNC or generate 13.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Hans CNC vs. Sichuan Qiaoyuan Gas
Performance |
| Timeline |
| Shenzhen Hans CNC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Sichuan Qiaoyuan Gas |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shenzhen Hans and Sichuan Qiaoyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hans and Sichuan Qiaoyuan
The main advantage of trading using opposite Shenzhen Hans and Sichuan Qiaoyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hans position performs unexpectedly, Sichuan Qiaoyuan 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 Sichuan Qiaoyuan will offset losses from the drop in Sichuan Qiaoyuan's long position.| Shenzhen Hans vs. Shanghai SK Automation | Shenzhen Hans vs. Chongqing Mas SciTech | Shenzhen Hans vs. Zhejiang Kaishan Compressor |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |