Correlation Between Shandong Publishing and Shenzhen Changfang
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By analyzing existing cross correlation between Shandong Publishing Media and Shenzhen Changfang Light, you can compare the effects of market volatilities on Shandong Publishing and Shenzhen Changfang 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 Changfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Publishing and Shenzhen Changfang.
Diversification Opportunities for Shandong Publishing and Shenzhen Changfang
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shandong and Shenzhen is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Publishing Media and Shenzhen Changfang Light in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Changfang Light 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 Changfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Changfang Light has no effect on the direction of Shandong Publishing i.e., Shandong Publishing and Shenzhen Changfang go up and down completely randomly.
Pair Corralation between Shandong Publishing and Shenzhen Changfang
Assuming the 90 days trading horizon Shandong Publishing Media is expected to generate 0.72 times more return on investment than Shenzhen Changfang. However, Shandong Publishing Media is 1.39 times less risky than Shenzhen Changfang. It trades about 0.07 of its potential returns per unit of risk. Shenzhen Changfang Light is currently generating about 0.02 per unit of risk. If you would invest 594.00 in Shandong Publishing Media on September 14, 2024 and sell it today you would earn a total of 562.00 from holding Shandong Publishing Media or generate 94.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shandong Publishing Media vs. Shenzhen Changfang Light
Performance |
| Timeline |
| Shandong Publishing Media |
| Shenzhen Changfang Light |
Shandong Publishing and Shenzhen Changfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Publishing and Shenzhen Changfang
The main advantage of trading using opposite Shandong Publishing and Shenzhen Changfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Publishing position performs unexpectedly, Shenzhen Changfang 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 Changfang will offset losses from the drop in Shenzhen Changfang's long position.| Shandong Publishing vs. Ming Yang Smart | Shandong Publishing vs. 159681 | Shandong Publishing vs. 159005 | Shandong Publishing vs. Loctek Ergonomic Technology |
| Shenzhen Changfang vs. Industrial and Commercial | Shenzhen Changfang vs. Agricultural Bank of | Shenzhen Changfang vs. China Construction Bank | Shenzhen Changfang vs. Bank of China |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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