Correlation Between Changjiang Jinggong and Shenzhen MYS
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By analyzing existing cross correlation between Changjiang Jinggong Steel and Shenzhen MYS Environmental, you can compare the effects of market volatilities on Changjiang Jinggong 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 Changjiang Jinggong with a short position of Shenzhen MYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Jinggong and Shenzhen MYS.
Diversification Opportunities for Changjiang Jinggong and Shenzhen MYS
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Changjiang and Shenzhen is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Jinggong Steel 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 Changjiang Jinggong 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 Changjiang Jinggong Steel 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 Changjiang Jinggong i.e., Changjiang Jinggong and Shenzhen MYS go up and down completely randomly.
Pair Corralation between Changjiang Jinggong and Shenzhen MYS
Assuming the 90 days trading horizon Changjiang Jinggong Steel is expected to under-perform the Shenzhen MYS. But the stock apears to be less risky and, when comparing its historical volatility, Changjiang Jinggong Steel is 1.51 times less risky than Shenzhen MYS. The stock trades about -0.04 of its potential returns per unit of risk. The Shenzhen MYS Environmental is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 271.00 in Shenzhen MYS Environmental on August 29, 2024 and sell it today you would earn a total of 101.00 from holding Shenzhen MYS Environmental or generate 37.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changjiang Jinggong Steel vs. Shenzhen MYS Environmental
Performance |
| Timeline |
| Changjiang Jinggong Steel |
| Shenzhen MYS Environ |
Changjiang Jinggong and Shenzhen MYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Jinggong and Shenzhen MYS
The main advantage of trading using opposite Changjiang Jinggong and Shenzhen MYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Jinggong 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.| Changjiang Jinggong vs. Ming Yang Smart | Changjiang Jinggong vs. 159681 | Changjiang Jinggong vs. 159005 | Changjiang Jinggong vs. Loctek Ergonomic Technology |
| Shenzhen MYS vs. Gansu Yasheng Industrial | Shenzhen MYS vs. Integrated Electronic Systems | Shenzhen MYS vs. Chengtun Mining Group | Shenzhen MYS vs. Zhejiang Yayi Metal |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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