Correlation Between Dongxing Sec and Shenzhen Worldunion
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By analyzing existing cross correlation between Dongxing Sec Co and Shenzhen Worldunion Properties, you can compare the effects of market volatilities on Dongxing Sec and Shenzhen Worldunion 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 Dongxing Sec with a short position of Shenzhen Worldunion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and Shenzhen Worldunion.
Diversification Opportunities for Dongxing Sec and Shenzhen Worldunion
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dongxing and Shenzhen is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec Co and Shenzhen Worldunion Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Worldunion and Dongxing Sec 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 Dongxing Sec Co are associated (or correlated) with Shenzhen Worldunion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Worldunion has no effect on the direction of Dongxing Sec i.e., Dongxing Sec and Shenzhen Worldunion go up and down completely randomly.
Pair Corralation between Dongxing Sec and Shenzhen Worldunion
Assuming the 90 days trading horizon Dongxing Sec is expected to generate 1.61 times less return on investment than Shenzhen Worldunion. But when comparing it to its historical volatility, Dongxing Sec Co is 1.32 times less risky than Shenzhen Worldunion. It trades about 0.17 of its potential returns per unit of risk. Shenzhen Worldunion Properties is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 177.00 in Shenzhen Worldunion Properties on September 2, 2024 and sell it today you would earn a total of 138.00 from holding Shenzhen Worldunion Properties or generate 77.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongxing Sec Co vs. Shenzhen Worldunion Properties
Performance |
| Timeline |
| Dongxing Sec |
| Shenzhen Worldunion |
Dongxing Sec and Shenzhen Worldunion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and Shenzhen Worldunion
The main advantage of trading using opposite Dongxing Sec and Shenzhen Worldunion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec position performs unexpectedly, Shenzhen Worldunion 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 Worldunion will offset losses from the drop in Shenzhen Worldunion's long position.| Dongxing Sec vs. Chongqing Shunbo Aluminum | Dongxing Sec vs. Shanghai Yanpu Metal | Dongxing Sec vs. Dymatic Chemicals | Dongxing Sec vs. Jilin Chemical Fibre |
| Shenzhen Worldunion vs. BeiGene | Shenzhen Worldunion vs. Kweichow Moutai Co | Shenzhen Worldunion vs. Beijing Roborock Technology | Shenzhen Worldunion vs. G bits Network Technology |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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