Correlation Between Hefei Metalforming and Shenzhen MYS
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By analyzing existing cross correlation between Hefei Metalforming Mach and Shenzhen MYS Environmental, you can compare the effects of market volatilities on Hefei Metalforming and Shenzhen MYS 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 Hefei Metalforming with a short position of Shenzhen MYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and Shenzhen MYS.
Diversification Opportunities for Hefei Metalforming and Shenzhen MYS
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hefei and Shenzhen is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach and Shenzhen MYS Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MYS Environ and Hefei Metalforming 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 Hefei Metalforming Mach are associated (or correlated) with Shenzhen MYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MYS Environ has no effect on the direction of Hefei Metalforming i.e., Hefei Metalforming and Shenzhen MYS go up and down completely randomly.
Pair Corralation between Hefei Metalforming and Shenzhen MYS
Assuming the 90 days trading horizon Hefei Metalforming is expected to generate 1.11 times less return on investment than Shenzhen MYS. In addition to that, Hefei Metalforming is 1.4 times more volatile than Shenzhen MYS Environmental. It trades about 0.03 of its total potential returns per unit of risk. Shenzhen MYS Environmental is currently generating about 0.05 per unit of volatility. If you would invest 271.00 in Shenzhen MYS Environmental on August 29, 2024 and sell it today you would earn a total of 101.00 from holding Shenzhen MYS Environmental or generate 37.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hefei Metalforming Mach vs. Shenzhen MYS Environmental
Performance |
| Timeline |
| Hefei Metalforming Mach |
| Shenzhen MYS Environ |
Hefei Metalforming and Shenzhen MYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and Shenzhen MYS
The main advantage of trading using opposite Hefei Metalforming and Shenzhen MYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming position performs unexpectedly, Shenzhen MYS 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 MYS will offset losses from the drop in Shenzhen MYS's long position.| Hefei Metalforming vs. Biwin Storage Technology | Hefei Metalforming vs. PetroChina Co Ltd | Hefei Metalforming vs. Industrial and Commercial | Hefei Metalforming vs. China Construction Bank |
| Shenzhen MYS vs. Gansu Yasheng Industrial | Shenzhen MYS vs. Integrated Electronic Systems | Shenzhen MYS vs. Chengtun Mining Group | Shenzhen MYS vs. Zhejiang Yayi Metal |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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