Correlation Between Shaanxi Broadcast and Shenzhen
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By analyzing existing cross correlation between Shaanxi Broadcast TV and Shenzhen AV Display Co, you can compare the effects of market volatilities on Shaanxi Broadcast and 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 Shaanxi Broadcast with a short position of Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Broadcast and Shenzhen.
Diversification Opportunities for Shaanxi Broadcast and Shenzhen
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shaanxi and Shenzhen is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Broadcast TV and Shenzhen AV Display Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen AV Display and Shaanxi Broadcast 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 Shaanxi Broadcast TV are associated (or correlated) with Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen AV Display has no effect on the direction of Shaanxi Broadcast i.e., Shaanxi Broadcast and Shenzhen go up and down completely randomly.
Pair Corralation between Shaanxi Broadcast and Shenzhen
Assuming the 90 days trading horizon Shaanxi Broadcast TV is expected to generate 0.91 times more return on investment than Shenzhen. However, Shaanxi Broadcast TV is 1.1 times less risky than Shenzhen. It trades about 0.02 of its potential returns per unit of risk. Shenzhen AV Display Co is currently generating about -0.03 per unit of risk. If you would invest 225.00 in Shaanxi Broadcast TV on October 14, 2024 and sell it today you would earn a total of 4.00 from holding Shaanxi Broadcast TV or generate 1.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Broadcast TV vs. Shenzhen AV Display Co
Performance |
| Timeline |
| Shaanxi Broadcast |
| Shenzhen AV Display |
Shaanxi Broadcast and Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Broadcast and Shenzhen
The main advantage of trading using opposite Shaanxi Broadcast and Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Broadcast position performs unexpectedly, 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 Shenzhen will offset losses from the drop in Shenzhen's long position.| Shaanxi Broadcast vs. Hygon Information Technology | Shaanxi Broadcast vs. Keeson Technology Corp | Shaanxi Broadcast vs. Eyebright Medical Technology | Shaanxi Broadcast vs. Guangdong Xiongsu Technology |
| Shenzhen vs. Shaanxi Broadcast TV | Shenzhen vs. Road Environment Technology | Shenzhen vs. Dazhong Transportation Group | Shenzhen vs. Zhongshan Broad Ocean Motor |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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