Correlation Between Hangzhou Minsheng and Shenzhen Agricultural
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By analyzing existing cross correlation between Hangzhou Minsheng Healthcare and Shenzhen Agricultural Products, you can compare the effects of market volatilities on Hangzhou Minsheng and Shenzhen Agricultural 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 Hangzhou Minsheng with a short position of Shenzhen Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Minsheng and Shenzhen Agricultural.
Diversification Opportunities for Hangzhou Minsheng and Shenzhen Agricultural
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hangzhou and Shenzhen is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Minsheng Healthcare and Shenzhen Agricultural Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Agricultural and Hangzhou Minsheng 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 Hangzhou Minsheng Healthcare are associated (or correlated) with Shenzhen Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Agricultural has no effect on the direction of Hangzhou Minsheng i.e., Hangzhou Minsheng and Shenzhen Agricultural go up and down completely randomly.
Pair Corralation between Hangzhou Minsheng and Shenzhen Agricultural
Assuming the 90 days trading horizon Hangzhou Minsheng is expected to generate 1.75 times less return on investment than Shenzhen Agricultural. In addition to that, Hangzhou Minsheng is 1.36 times more volatile than Shenzhen Agricultural Products. It trades about 0.05 of its total potential returns per unit of risk. Shenzhen Agricultural Products is currently generating about 0.11 per unit of volatility. If you would invest 534.00 in Shenzhen Agricultural Products on November 2, 2024 and sell it today you would earn a total of 124.00 from holding Shenzhen Agricultural Products or generate 23.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Minsheng Healthcare vs. Shenzhen Agricultural Products
Performance |
| Timeline |
| Hangzhou Minsheng |
| Shenzhen Agricultural |
Hangzhou Minsheng and Shenzhen Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Minsheng and Shenzhen Agricultural
The main advantage of trading using opposite Hangzhou Minsheng and Shenzhen Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Minsheng position performs unexpectedly, Shenzhen Agricultural 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 Agricultural will offset losses from the drop in Shenzhen Agricultural's long position.| Hangzhou Minsheng vs. Bingo Software Co | Hangzhou Minsheng vs. Linkage Software Co | Hangzhou Minsheng vs. Quectel Wireless Solutions | Hangzhou Minsheng vs. Hainan HNA Infrastructure |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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