Correlation Between Sichuan Hebang and Shenzhen New
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By analyzing existing cross correlation between Sichuan Hebang Biotechnology and Shenzhen New Nanshan, you can compare the effects of market volatilities on Sichuan Hebang and Shenzhen New 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 Sichuan Hebang with a short position of Shenzhen New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Hebang and Shenzhen New.
Diversification Opportunities for Sichuan Hebang and Shenzhen New
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sichuan and Shenzhen is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Hebang Biotechnology and Shenzhen New Nanshan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen New Nanshan and Sichuan Hebang 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 Sichuan Hebang Biotechnology are associated (or correlated) with Shenzhen New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen New Nanshan has no effect on the direction of Sichuan Hebang i.e., Sichuan Hebang and Shenzhen New go up and down completely randomly.
Pair Corralation between Sichuan Hebang and Shenzhen New
Assuming the 90 days trading horizon Sichuan Hebang Biotechnology is expected to generate about the same return on investment as Shenzhen New Nanshan. But, Sichuan Hebang Biotechnology is 1.39 times less risky than Shenzhen New. It trades about -0.02 of its potential returns per unit of risk. Shenzhen New Nanshan is currently generating about -0.01 per unit of risk. If you would invest 403.00 in Shenzhen New Nanshan on September 13, 2024 and sell it today you would lose (96.00) from holding Shenzhen New Nanshan or give up 23.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Hebang Biotechnology vs. Shenzhen New Nanshan
Performance |
| Timeline |
| Sichuan Hebang Biote |
| Shenzhen New Nanshan |
Sichuan Hebang and Shenzhen New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Hebang and Shenzhen New
The main advantage of trading using opposite Sichuan Hebang and Shenzhen New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Hebang position performs unexpectedly, Shenzhen New 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 New will offset losses from the drop in Shenzhen New's long position.| Sichuan Hebang vs. Hengli Industrial Development | Sichuan Hebang vs. Xiandai Investment Co | Sichuan Hebang vs. Yunnan Xiyi Industrial | Sichuan Hebang vs. Postal Savings Bank |
| Shenzhen New vs. Guangdong Marubi Biotechnology | Shenzhen New vs. Ningbo Ligong Online | Shenzhen New vs. Quectel Wireless Solutions | Shenzhen New vs. Sichuan Hebang Biotechnology |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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