Correlation Between Dongxing Sec and Shenzhen Silver
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By analyzing existing cross correlation between Dongxing Sec Co and Shenzhen Silver Basis, you can compare the effects of market volatilities on Dongxing Sec and Shenzhen Silver 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 Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and Shenzhen Silver.
Diversification Opportunities for Dongxing Sec and Shenzhen Silver
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dongxing and Shenzhen is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec Co and Shenzhen Silver Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Silver Basis 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 Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Silver Basis has no effect on the direction of Dongxing Sec i.e., Dongxing Sec and Shenzhen Silver go up and down completely randomly.
Pair Corralation between Dongxing Sec and Shenzhen Silver
Assuming the 90 days trading horizon Dongxing Sec is expected to generate 1.05 times less return on investment than Shenzhen Silver. But when comparing it to its historical volatility, Dongxing Sec Co is 1.19 times less risky than Shenzhen Silver. It trades about 0.19 of its potential returns per unit of risk. Shenzhen Silver Basis is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 794.00 in Shenzhen Silver Basis on September 12, 2024 and sell it today you would earn a total of 382.00 from holding Shenzhen Silver Basis or generate 48.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongxing Sec Co vs. Shenzhen Silver Basis
Performance |
| Timeline |
| Dongxing Sec |
| Shenzhen Silver Basis |
Dongxing Sec and Shenzhen Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and Shenzhen Silver
The main advantage of trading using opposite Dongxing Sec and Shenzhen Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec position performs unexpectedly, Shenzhen Silver 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 Silver will offset losses from the drop in Shenzhen Silver's long position.| Dongxing Sec vs. Zhongtong Guomai Communication | Dongxing Sec vs. Harbin Air Conditioning | Dongxing Sec vs. Sunwave Communications Co | Dongxing Sec vs. Fiberhome Telecommunication Technologies |
| Shenzhen Silver vs. Hunan Mendale Hometextile | Shenzhen Silver vs. Oppein Home Group | Shenzhen Silver vs. Chengdu Spaceon Electronics | Shenzhen Silver vs. Sanbo Hospital Management |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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