Correlation Between China International and Shenzhen SDG
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By analyzing existing cross correlation between China International Capital and Shenzhen SDG Information, you can compare the effects of market volatilities on China International and Shenzhen SDG 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 China International with a short position of Shenzhen SDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of China International and Shenzhen SDG.
Diversification Opportunities for China International and Shenzhen SDG
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Shenzhen is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding China International Capital and Shenzhen SDG Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen SDG Information and China International 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 China International Capital are associated (or correlated) with Shenzhen SDG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen SDG Information has no effect on the direction of China International i.e., China International and Shenzhen SDG go up and down completely randomly.
Pair Corralation between China International and Shenzhen SDG
Assuming the 90 days trading horizon China International is expected to generate 1.55 times less return on investment than Shenzhen SDG. In addition to that, China International is 1.12 times more volatile than Shenzhen SDG Information. It trades about 0.05 of its total potential returns per unit of risk. Shenzhen SDG Information is currently generating about 0.09 per unit of volatility. If you would invest 463.00 in Shenzhen SDG Information on September 1, 2024 and sell it today you would earn a total of 123.00 from holding Shenzhen SDG Information or generate 26.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China International Capital vs. Shenzhen SDG Information
Performance |
| Timeline |
| China International |
| Shenzhen SDG Information |
China International and Shenzhen SDG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China International and Shenzhen SDG
The main advantage of trading using opposite China International and Shenzhen SDG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China International position performs unexpectedly, Shenzhen SDG 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 SDG will offset losses from the drop in Shenzhen SDG's long position.| China International vs. Offshore Oil Engineering | China International vs. Guocheng Mining Co | China International vs. Zhengzhou Coal Mining | China International vs. Xiandai Investment Co |
| Shenzhen SDG vs. Xiangtan Electrochemical Scientific | Shenzhen SDG vs. Eastroc Beverage Group | Shenzhen SDG vs. Gan Yuan Foods | Shenzhen SDG vs. Xiwang Foodstuffs Co |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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