Correlation Between China Merchants and Shenzhen Dynanonic
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By analyzing existing cross correlation between China Merchants Bank and Shenzhen Dynanonic Co, you can compare the effects of market volatilities on China Merchants and Shenzhen Dynanonic 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 Merchants with a short position of Shenzhen Dynanonic. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Merchants and Shenzhen Dynanonic.
Diversification Opportunities for China Merchants and Shenzhen Dynanonic
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Shenzhen is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding China Merchants Bank and Shenzhen Dynanonic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Dynanonic and China Merchants 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 Merchants Bank are associated (or correlated) with Shenzhen Dynanonic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Dynanonic has no effect on the direction of China Merchants i.e., China Merchants and Shenzhen Dynanonic go up and down completely randomly.
Pair Corralation between China Merchants and Shenzhen Dynanonic
Assuming the 90 days trading horizon China Merchants Bank is expected to generate 0.37 times more return on investment than Shenzhen Dynanonic. However, China Merchants Bank is 2.73 times less risky than Shenzhen Dynanonic. It trades about 0.0 of its potential returns per unit of risk. Shenzhen Dynanonic Co is currently generating about -0.06 per unit of risk. If you would invest 3,983 in China Merchants Bank on October 16, 2024 and sell it today you would lose (76.00) from holding China Merchants Bank or give up 1.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Merchants Bank vs. Shenzhen Dynanonic Co
Performance |
| Timeline |
| China Merchants Bank |
| Shenzhen Dynanonic |
China Merchants and Shenzhen Dynanonic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Merchants and Shenzhen Dynanonic
The main advantage of trading using opposite China Merchants and Shenzhen Dynanonic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Merchants position performs unexpectedly, Shenzhen Dynanonic 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 Dynanonic will offset losses from the drop in Shenzhen Dynanonic's long position.| China Merchants vs. Shenzhen Zhongzhuang Construction | China Merchants vs. Huasi Agricultural Development | China Merchants vs. Gifore Agricultural Machinery | China Merchants vs. Shuhua Sports Co |
| Shenzhen Dynanonic vs. Jinling Hotel Corp | Shenzhen Dynanonic vs. Innovative Medical Management | Shenzhen Dynanonic vs. Tinavi Medical Technologies | Shenzhen Dynanonic vs. Hubei Geoway Investment |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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