Correlation Between Chengdu B and Shenzhen New
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By analyzing existing cross correlation between Chengdu B ray Media and Shenzhen New Nanshan, you can compare the effects of market volatilities on Chengdu B and Shenzhen New 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 Chengdu B with a short position of Shenzhen New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu B and Shenzhen New.
Diversification Opportunities for Chengdu B and Shenzhen New
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chengdu and Shenzhen is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu B ray Media and Shenzhen New Nanshan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen New Nanshan and Chengdu B 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 Chengdu B ray Media are associated (or correlated) with Shenzhen New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen New Nanshan has no effect on the direction of Chengdu B i.e., Chengdu B and Shenzhen New go up and down completely randomly.
Pair Corralation between Chengdu B and Shenzhen New
Assuming the 90 days trading horizon Chengdu B ray Media is expected to generate 1.15 times more return on investment than Shenzhen New. However, Chengdu B is 1.15 times more volatile than Shenzhen New Nanshan. It trades about 0.0 of its potential returns per unit of risk. Shenzhen New Nanshan is currently generating about -0.01 per unit of risk. If you would invest 560.00 in Chengdu B ray Media on September 3, 2024 and sell it today you would lose (63.00) from holding Chengdu B ray Media or give up 11.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu B ray Media vs. Shenzhen New Nanshan
Performance |
| Timeline |
| Chengdu B ray |
| Shenzhen New Nanshan |
Chengdu B and Shenzhen New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu B and Shenzhen New
The main advantage of trading using opposite Chengdu B and Shenzhen New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu B position performs unexpectedly, Shenzhen New 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 New will offset losses from the drop in Shenzhen New's long position.| Chengdu B vs. Gansu Jiu Steel | Chengdu B vs. Ming Yang Smart | Chengdu B vs. Aba Chemicals Corp | Chengdu B vs. Loctek Ergonomic Technology |
| Shenzhen New vs. Chengdu B ray Media | Shenzhen New vs. Lonkey Industrial Co | Shenzhen New vs. Yoantion Industrial IncLtd | Shenzhen New vs. Dalian Zeus Entertainment |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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