Correlation Between Shandong Publishing and Shenzhen Clou
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By analyzing existing cross correlation between Shandong Publishing Media and Shenzhen Clou Electronics, you can compare the effects of market volatilities on Shandong Publishing and Shenzhen Clou 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 Shandong Publishing with a short position of Shenzhen Clou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Publishing and Shenzhen Clou.
Diversification Opportunities for Shandong Publishing and Shenzhen Clou
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shandong and Shenzhen is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Publishing Media and Shenzhen Clou Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Clou Electronics and Shandong Publishing 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 Shandong Publishing Media are associated (or correlated) with Shenzhen Clou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Clou Electronics has no effect on the direction of Shandong Publishing i.e., Shandong Publishing and Shenzhen Clou go up and down completely randomly.
Pair Corralation between Shandong Publishing and Shenzhen Clou
Assuming the 90 days trading horizon Shandong Publishing is expected to generate 1.29 times less return on investment than Shenzhen Clou. But when comparing it to its historical volatility, Shandong Publishing Media is 1.15 times less risky than Shenzhen Clou. It trades about 0.03 of its potential returns per unit of risk. Shenzhen Clou Electronics is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 388.00 in Shenzhen Clou Electronics on August 29, 2024 and sell it today you would earn a total of 55.00 from holding Shenzhen Clou Electronics or generate 14.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Publishing Media vs. Shenzhen Clou Electronics
Performance |
| Timeline |
| Shandong Publishing Media |
| Shenzhen Clou Electronics |
Shandong Publishing and Shenzhen Clou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Publishing and Shenzhen Clou
The main advantage of trading using opposite Shandong Publishing and Shenzhen Clou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Publishing position performs unexpectedly, Shenzhen Clou 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 Clou will offset losses from the drop in Shenzhen Clou's long position.| Shandong Publishing vs. Industrial and Commercial | Shandong Publishing vs. Agricultural Bank of | Shandong Publishing vs. China Construction Bank | Shandong Publishing vs. Bank of China |
| Shenzhen Clou vs. PetroChina Co Ltd | Shenzhen Clou vs. China State Construction | Shenzhen Clou vs. China Mobile Limited | Shenzhen Clou vs. Industrial and Commercial |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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