Correlation Between Shenzhen Longsys and Beijing Wandong
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By analyzing existing cross correlation between Shenzhen Longsys Electronics and Beijing Wandong Medical, you can compare the effects of market volatilities on Shenzhen Longsys and Beijing Wandong 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 Longsys with a short position of Beijing Wandong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Longsys and Beijing Wandong.
Diversification Opportunities for Shenzhen Longsys and Beijing Wandong
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Beijing is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Longsys Electronics and Beijing Wandong Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wandong Medical and Shenzhen Longsys 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 Longsys Electronics are associated (or correlated) with Beijing Wandong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wandong Medical has no effect on the direction of Shenzhen Longsys i.e., Shenzhen Longsys and Beijing Wandong go up and down completely randomly.
Pair Corralation between Shenzhen Longsys and Beijing Wandong
Assuming the 90 days trading horizon Shenzhen Longsys Electronics is expected to under-perform the Beijing Wandong. In addition to that, Shenzhen Longsys is 1.46 times more volatile than Beijing Wandong Medical. It trades about -0.01 of its total potential returns per unit of risk. Beijing Wandong Medical is currently generating about 0.0 per unit of volatility. If you would invest 1,836 in Beijing Wandong Medical on September 1, 2024 and sell it today you would lose (123.00) from holding Beijing Wandong Medical or give up 6.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Longsys Electronics vs. Beijing Wandong Medical
Performance |
| Timeline |
| Shenzhen Longsys Ele |
| Beijing Wandong Medical |
Shenzhen Longsys and Beijing Wandong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Longsys and Beijing Wandong
The main advantage of trading using opposite Shenzhen Longsys and Beijing Wandong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Longsys position performs unexpectedly, Beijing Wandong 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 Beijing Wandong will offset losses from the drop in Beijing Wandong's long position.| Shenzhen Longsys vs. Puyang Huicheng Electronic | Shenzhen Longsys vs. Northking Information Technology | Shenzhen Longsys vs. OBiO Technology Corp | Shenzhen Longsys vs. Shenzhen Clou Electronics |
| Beijing Wandong vs. Jiangxi Naipu Mining | Beijing Wandong vs. Anhui Huilong Agricultural | Beijing Wandong vs. Xinjiang Baodi Mining | Beijing Wandong vs. Jinhui Liquor 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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