Correlation Between Shanxi Lanhua and Shenzhen Centralcon
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanxi Lanhua Sci Tech and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on Shanxi Lanhua and Shenzhen Centralcon 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 Shanxi Lanhua with a short position of Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanxi Lanhua and Shenzhen Centralcon.
Diversification Opportunities for Shanxi Lanhua and Shenzhen Centralcon
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanxi and Shenzhen is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Shanxi Lanhua Sci Tech and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon and Shanxi Lanhua 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 Shanxi Lanhua Sci Tech are associated (or correlated) with Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of Shanxi Lanhua i.e., Shanxi Lanhua and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between Shanxi Lanhua and Shenzhen Centralcon
Assuming the 90 days trading horizon Shanxi Lanhua Sci Tech is expected to generate 0.62 times more return on investment than Shenzhen Centralcon. However, Shanxi Lanhua Sci Tech is 1.62 times less risky than Shenzhen Centralcon. It trades about 0.0 of its potential returns per unit of risk. Shenzhen Centralcon Investment is currently generating about -0.01 per unit of risk. If you would invest 968.00 in Shanxi Lanhua Sci Tech on September 21, 2024 and sell it today you would lose (75.00) from holding Shanxi Lanhua Sci Tech or give up 7.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanxi Lanhua Sci Tech vs. Shenzhen Centralcon Investment
Performance |
| Timeline |
| Shanxi Lanhua Sci |
| Shenzhen Centralcon |
Shanxi Lanhua and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanxi Lanhua and Shenzhen Centralcon
The main advantage of trading using opposite Shanxi Lanhua and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanxi Lanhua position performs unexpectedly, Shenzhen Centralcon 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 Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.| Shanxi Lanhua vs. Tongyu Communication | Shanxi Lanhua vs. Guangdong Shenglu Telecommunication | Shanxi Lanhua vs. Xinjiang Communications Construction | Shanxi Lanhua vs. Zhongshan Public Utilities |
| Shenzhen Centralcon vs. Xinjiang Communications Construction | Shenzhen Centralcon vs. Great Sun Foods Co | Shenzhen Centralcon vs. New Hope Dairy | Shenzhen Centralcon vs. Hubei Yingtong Telecommunication |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |