Correlation Between China Asset and Shenzhen Clou
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By analyzing existing cross correlation between China Asset Management and Shenzhen Clou Electronics, you can compare the effects of market volatilities on China Asset and Shenzhen Clou 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 China Asset with a short position of Shenzhen Clou. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Shenzhen Clou.
Diversification Opportunities for China Asset and Shenzhen Clou
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Shenzhen is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management and Shenzhen Clou Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Clou Electronics and China Asset 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 China Asset Management are associated (or correlated) with Shenzhen Clou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Clou Electronics has no effect on the direction of China Asset i.e., China Asset and Shenzhen Clou go up and down completely randomly.
Pair Corralation between China Asset and Shenzhen Clou
Assuming the 90 days trading horizon China Asset is expected to generate 4.38 times less return on investment than Shenzhen Clou. But when comparing it to its historical volatility, China Asset Management is 4.07 times less risky than Shenzhen Clou. It trades about 0.17 of its potential returns per unit of risk. Shenzhen Clou Electronics is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 411.00 in Shenzhen Clou Electronics on September 5, 2024 and sell it today you would earn a total of 57.00 from holding Shenzhen Clou Electronics or generate 13.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. Shenzhen Clou Electronics
Performance |
| Timeline |
| China Asset Management |
| Shenzhen Clou Electronics |
China Asset and Shenzhen Clou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and Shenzhen Clou
The main advantage of trading using opposite China Asset and Shenzhen Clou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset position performs unexpectedly, Shenzhen Clou 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 Clou will offset losses from the drop in Shenzhen Clou's long position.| China Asset vs. Industrial and Commercial | China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited |
| Shenzhen Clou vs. Jiajia Food Group | Shenzhen Clou vs. Xinhua Winshare Publishing | Shenzhen Clou vs. Beijing Sanyuan Foods | Shenzhen Clou vs. China Asset Management |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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