Correlation Between Southern PublishingMedia and Shenzhen Clou
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By analyzing existing cross correlation between Southern PublishingMedia Co and Shenzhen Clou Electronics, you can compare the effects of market volatilities on Southern PublishingMedia 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 Southern PublishingMedia with a short position of Shenzhen Clou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern PublishingMedia and Shenzhen Clou.
Diversification Opportunities for Southern PublishingMedia and Shenzhen Clou
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Southern and Shenzhen is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Southern PublishingMedia Co 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 Southern PublishingMedia 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 Southern PublishingMedia Co 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 Southern PublishingMedia i.e., Southern PublishingMedia and Shenzhen Clou go up and down completely randomly.
Pair Corralation between Southern PublishingMedia and Shenzhen Clou
Assuming the 90 days trading horizon Southern PublishingMedia Co is expected to generate 0.49 times more return on investment than Shenzhen Clou. However, Southern PublishingMedia Co is 2.06 times less risky than Shenzhen Clou. It trades about -0.23 of its potential returns per unit of risk. Shenzhen Clou Electronics is currently generating about -0.22 per unit of risk. If you would invest 1,585 in Southern PublishingMedia Co on October 14, 2024 and sell it today you would lose (148.00) from holding Southern PublishingMedia Co or give up 9.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Southern PublishingMedia Co vs. Shenzhen Clou Electronics
Performance |
| Timeline |
| Southern PublishingMedia |
| Shenzhen Clou Electronics |
Southern PublishingMedia and Shenzhen Clou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southern PublishingMedia and Shenzhen Clou
The main advantage of trading using opposite Southern PublishingMedia and Shenzhen Clou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern PublishingMedia 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.The idea behind Southern PublishingMedia Co and Shenzhen Clou Electronics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Shenzhen Clou vs. Southern PublishingMedia Co | Shenzhen Clou vs. Will Semiconductor Co | Shenzhen Clou vs. StarPower Semiconductor | Shenzhen Clou vs. Offcn Education 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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