Correlation Between Lushang Property and Shenzhen SDG
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By analyzing existing cross correlation between Lushang Property Co and Shenzhen SDG Service, you can compare the effects of market volatilities on Lushang Property and Shenzhen SDG 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 Lushang Property with a short position of Shenzhen SDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lushang Property and Shenzhen SDG.
Diversification Opportunities for Lushang Property and Shenzhen SDG
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lushang and Shenzhen is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Lushang Property Co and Shenzhen SDG Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen SDG Service and Lushang Property 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 Lushang Property Co are associated (or correlated) with Shenzhen SDG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen SDG Service has no effect on the direction of Lushang Property i.e., Lushang Property and Shenzhen SDG go up and down completely randomly.
Pair Corralation between Lushang Property and Shenzhen SDG
Assuming the 90 days trading horizon Lushang Property Co is expected to under-perform the Shenzhen SDG. But the stock apears to be less risky and, when comparing its historical volatility, Lushang Property Co is 1.25 times less risky than Shenzhen SDG. The stock trades about -0.22 of its potential returns per unit of risk. The Shenzhen SDG Service is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 5,171 in Shenzhen SDG Service on October 28, 2024 and sell it today you would lose (514.00) from holding Shenzhen SDG Service or give up 9.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lushang Property Co vs. Shenzhen SDG Service
Performance |
| Timeline |
| Lushang Property |
| Shenzhen SDG Service |
Lushang Property and Shenzhen SDG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lushang Property and Shenzhen SDG
The main advantage of trading using opposite Lushang Property and Shenzhen SDG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lushang Property position performs unexpectedly, Shenzhen SDG 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 SDG will offset losses from the drop in Shenzhen SDG's long position.| Lushang Property vs. Qingdao Haier Biomedical | Lushang Property vs. Keda Clean Energy | Lushang Property vs. Gansu Huangtai Wine marketing | Lushang Property vs. Citic Guoan Wine |
| Shenzhen SDG vs. Agricultural Bank of | Shenzhen SDG vs. Industrial and Commercial | Shenzhen SDG vs. Bank of China | Shenzhen SDG vs. China Construction Bank |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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