Correlation Between Shandong Homey and Shenzhen Silver
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By analyzing existing cross correlation between Shandong Homey Aquatic and Shenzhen Silver Basis, you can compare the effects of market volatilities on Shandong Homey and Shenzhen Silver 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 Shandong Homey with a short position of Shenzhen Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Homey and Shenzhen Silver.
Diversification Opportunities for Shandong Homey and Shenzhen Silver
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shandong and Shenzhen is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Homey Aquatic and Shenzhen Silver Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Silver Basis and Shandong Homey 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 Shandong Homey Aquatic are associated (or correlated) with Shenzhen Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Silver Basis has no effect on the direction of Shandong Homey i.e., Shandong Homey and Shenzhen Silver go up and down completely randomly.
Pair Corralation between Shandong Homey and Shenzhen Silver
Assuming the 90 days trading horizon Shandong Homey Aquatic is expected to generate 1.29 times more return on investment than Shenzhen Silver. However, Shandong Homey is 1.29 times more volatile than Shenzhen Silver Basis. It trades about -0.37 of its potential returns per unit of risk. Shenzhen Silver Basis is currently generating about -0.49 per unit of risk. If you would invest 286.00 in Shandong Homey Aquatic on October 14, 2024 and sell it today you would lose (68.00) from holding Shandong Homey Aquatic or give up 23.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Homey Aquatic vs. Shenzhen Silver Basis
Performance |
| Timeline |
| Shandong Homey Aquatic |
| Shenzhen Silver Basis |
Shandong Homey and Shenzhen Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Homey and Shenzhen Silver
The main advantage of trading using opposite Shandong Homey and Shenzhen Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Homey position performs unexpectedly, Shenzhen Silver 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 Silver will offset losses from the drop in Shenzhen Silver's long position.| Shandong Homey vs. Guangdong Wens Foodstuff | Shandong Homey vs. Guilin Seamild Foods | Shandong Homey vs. Olympic Circuit Technology | Shandong Homey vs. Linewell Software Co |
| Shenzhen Silver vs. Fiberhome Telecommunication Technologies | Shenzhen Silver vs. Ziel Home Furnishing | Shenzhen Silver vs. Xilong Chemical Co | Shenzhen Silver vs. Shandong Homey Aquatic |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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