Correlation Between Yunnan Bowin and Shenzhen Fortune
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By analyzing existing cross correlation between Yunnan Bowin Technology and Shenzhen Fortune Trend, you can compare the effects of market volatilities on Yunnan Bowin and Shenzhen Fortune 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 Yunnan Bowin with a short position of Shenzhen Fortune. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Bowin and Shenzhen Fortune.
Diversification Opportunities for Yunnan Bowin and Shenzhen Fortune
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yunnan and Shenzhen is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Bowin Technology and Shenzhen Fortune Trend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Fortune Trend and Yunnan Bowin 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 Yunnan Bowin Technology are associated (or correlated) with Shenzhen Fortune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Fortune Trend has no effect on the direction of Yunnan Bowin i.e., Yunnan Bowin and Shenzhen Fortune go up and down completely randomly.
Pair Corralation between Yunnan Bowin and Shenzhen Fortune
Assuming the 90 days trading horizon Yunnan Bowin is expected to generate 6.26 times less return on investment than Shenzhen Fortune. But when comparing it to its historical volatility, Yunnan Bowin Technology is 2.1 times less risky than Shenzhen Fortune. It trades about 0.02 of its potential returns per unit of risk. Shenzhen Fortune Trend is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 9,306 in Shenzhen Fortune Trend on September 3, 2024 and sell it today you would earn a total of 8,317 from holding Shenzhen Fortune Trend or generate 89.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Bowin Technology vs. Shenzhen Fortune Trend
Performance |
| Timeline |
| Yunnan Bowin Technology |
| Shenzhen Fortune Trend |
Yunnan Bowin and Shenzhen Fortune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Bowin and Shenzhen Fortune
The main advantage of trading using opposite Yunnan Bowin and Shenzhen Fortune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Bowin position performs unexpectedly, Shenzhen Fortune 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 Fortune will offset losses from the drop in Shenzhen Fortune's long position.| Yunnan Bowin vs. Guangdong Brandmax Marketing | Yunnan Bowin vs. Shandong Mining Machinery | Yunnan Bowin vs. Zijin Mining Group | Yunnan Bowin vs. Chenzhou Jingui Silver |
| Shenzhen Fortune vs. Allmed Medical Products | Shenzhen Fortune vs. Allgens Medical Technology | Shenzhen Fortune vs. Chengdu Xingrong Investment | Shenzhen Fortune vs. Luyin Investment Group |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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