Correlation Between Hubei Geoway and Shenzhen MYS
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By analyzing existing cross correlation between Hubei Geoway Investment and Shenzhen MYS Environmental, you can compare the effects of market volatilities on Hubei Geoway and Shenzhen MYS 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 Hubei Geoway with a short position of Shenzhen MYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Shenzhen MYS.
Diversification Opportunities for Hubei Geoway and Shenzhen MYS
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hubei and Shenzhen is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and Shenzhen MYS Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MYS Environ and Hubei Geoway 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 Hubei Geoway Investment are associated (or correlated) with Shenzhen MYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MYS Environ has no effect on the direction of Hubei Geoway i.e., Hubei Geoway and Shenzhen MYS go up and down completely randomly.
Pair Corralation between Hubei Geoway and Shenzhen MYS
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to under-perform the Shenzhen MYS. In addition to that, Hubei Geoway is 1.1 times more volatile than Shenzhen MYS Environmental. It trades about -0.04 of its total potential returns per unit of risk. Shenzhen MYS Environmental is currently generating about 0.03 per unit of volatility. If you would invest 282.00 in Shenzhen MYS Environmental on October 16, 2024 and sell it today you would earn a total of 34.00 from holding Shenzhen MYS Environmental or generate 12.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Geoway Investment vs. Shenzhen MYS Environmental
Performance |
| Timeline |
| Hubei Geoway Investment |
| Shenzhen MYS Environ |
Hubei Geoway and Shenzhen MYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Shenzhen MYS
The main advantage of trading using opposite Hubei Geoway and Shenzhen MYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway position performs unexpectedly, Shenzhen MYS 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 MYS will offset losses from the drop in Shenzhen MYS's long position.| Hubei Geoway vs. Tongxing Environmental Protection | Hubei Geoway vs. Penyao Environmental Protection | Hubei Geoway vs. Shuhua Sports Co | Hubei Geoway vs. Beijing Jiaman Dress |
| Shenzhen MYS vs. Hubei Geoway Investment | Shenzhen MYS vs. Guangdong Xiongsu Technology | Shenzhen MYS vs. Kuangda Technology Group | Shenzhen MYS vs. Zoje Resources 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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