Correlation Between China Building and Shenzhen MYS
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By analyzing existing cross correlation between China Building Material and Shenzhen MYS Environmental, you can compare the effects of market volatilities on China Building 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 China Building with a short position of Shenzhen MYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Building and Shenzhen MYS.
Diversification Opportunities for China Building and Shenzhen MYS
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Shenzhen is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding China Building Material 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 China Building 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 Building Material 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 China Building i.e., China Building and Shenzhen MYS go up and down completely randomly.
Pair Corralation between China Building and Shenzhen MYS
Assuming the 90 days trading horizon China Building is expected to generate 1.87 times less return on investment than Shenzhen MYS. In addition to that, China Building is 1.03 times more volatile than Shenzhen MYS Environmental. It trades about 0.07 of its total potential returns per unit of risk. Shenzhen MYS Environmental is currently generating about 0.14 per unit of volatility. If you would invest 209.00 in Shenzhen MYS Environmental on November 3, 2024 and sell it today you would earn a total of 131.00 from holding Shenzhen MYS Environmental or generate 62.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Building Material vs. Shenzhen MYS Environmental
Performance |
| Timeline |
| China Building Material |
| Shenzhen MYS Environ |
China Building and Shenzhen MYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Building and Shenzhen MYS
The main advantage of trading using opposite China Building and Shenzhen MYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Building 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.| China Building vs. MayAir Technology Co | China Building vs. Qifeng New Material | China Building vs. Qingdao Haier Biomedical | China Building vs. Winner Medical Co |
| Shenzhen MYS vs. Zijin Mining Group | Shenzhen MYS vs. Wanhua Chemical Group | Shenzhen MYS vs. Baoshan Iron Steel | Shenzhen MYS vs. Shandong Gold Mining |
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 Stocks Directory module to find actively traded stocks across global markets.
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