Correlation Between Long Yuan and Shenzhen Inovance
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By analyzing existing cross correlation between Long Yuan Construction and Shenzhen Inovance Tech, you can compare the effects of market volatilities on Long Yuan and Shenzhen Inovance 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 Long Yuan with a short position of Shenzhen Inovance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Long Yuan and Shenzhen Inovance.
Diversification Opportunities for Long Yuan and Shenzhen Inovance
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Long and Shenzhen is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Long Yuan Construction and Shenzhen Inovance Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Inovance Tech and Long Yuan 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 Long Yuan Construction are associated (or correlated) with Shenzhen Inovance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Inovance Tech has no effect on the direction of Long Yuan i.e., Long Yuan and Shenzhen Inovance go up and down completely randomly.
Pair Corralation between Long Yuan and Shenzhen Inovance
Assuming the 90 days trading horizon Long Yuan Construction is expected to under-perform the Shenzhen Inovance. In addition to that, Long Yuan is 1.13 times more volatile than Shenzhen Inovance Tech. It trades about -0.02 of its total potential returns per unit of risk. Shenzhen Inovance Tech is currently generating about 0.0 per unit of volatility. If you would invest 6,710 in Shenzhen Inovance Tech on September 28, 2024 and sell it today you would lose (771.00) from holding Shenzhen Inovance Tech or give up 11.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Long Yuan Construction vs. Shenzhen Inovance Tech
Performance |
| Timeline |
| Long Yuan Construction |
| Shenzhen Inovance Tech |
Long Yuan and Shenzhen Inovance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Long Yuan and Shenzhen Inovance
The main advantage of trading using opposite Long Yuan and Shenzhen Inovance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Long Yuan position performs unexpectedly, Shenzhen Inovance 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 Inovance will offset losses from the drop in Shenzhen Inovance's long position.| Long Yuan vs. Ming Yang Smart | Long Yuan vs. 159681 | Long Yuan vs. 159005 | Long Yuan vs. Loctek Ergonomic Technology |
| Shenzhen Inovance vs. BeiGene | Shenzhen Inovance vs. Kweichow Moutai Co | Shenzhen Inovance vs. Beijing Roborock Technology | Shenzhen Inovance vs. G bits Network 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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