Correlation Between V V and Leaguer Shenzhen
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By analyzing existing cross correlation between V V Food and Leaguer Shenzhen MicroElectronics, you can compare the effects of market volatilities on V V and Leaguer Shenzhen 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 V V with a short position of Leaguer Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of V V and Leaguer Shenzhen.
Diversification Opportunities for V V and Leaguer Shenzhen
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 600300 and Leaguer is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding V V Food and Leaguer Shenzhen MicroElectron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leaguer Shenzhen Mic and V V 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 V V Food are associated (or correlated) with Leaguer Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leaguer Shenzhen Mic has no effect on the direction of V V i.e., V V and Leaguer Shenzhen go up and down completely randomly.
Pair Corralation between V V and Leaguer Shenzhen
Assuming the 90 days trading horizon V V is expected to generate 1.61 times less return on investment than Leaguer Shenzhen. But when comparing it to its historical volatility, V V Food is 1.93 times less risky than Leaguer Shenzhen. It trades about 0.18 of its potential returns per unit of risk. Leaguer Shenzhen MicroElectronics is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,976 in Leaguer Shenzhen MicroElectronics on August 31, 2024 and sell it today you would earn a total of 849.00 from holding Leaguer Shenzhen MicroElectronics or generate 42.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
V V Food vs. Leaguer Shenzhen MicroElectron
Performance |
| Timeline |
| V V Food |
| Leaguer Shenzhen Mic |
V V and Leaguer Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with V V and Leaguer Shenzhen
The main advantage of trading using opposite V V and Leaguer Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if V V position performs unexpectedly, Leaguer Shenzhen 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 Leaguer Shenzhen will offset losses from the drop in Leaguer Shenzhen's long position.The idea behind V V Food and Leaguer Shenzhen MicroElectronics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Leaguer Shenzhen vs. Kweichow Moutai Co | Leaguer Shenzhen vs. NAURA Technology Group | Leaguer Shenzhen vs. APT Medical | Leaguer Shenzhen vs. Contemporary Amperex Technology |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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