Correlation Between Shandong Sinoglory and Shenzhen Fortune
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By analyzing existing cross correlation between Shandong Sinoglory Health and Shenzhen Fortune Trend, you can compare the effects of market volatilities on Shandong Sinoglory and Shenzhen Fortune 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 Shandong Sinoglory with a short position of Shenzhen Fortune. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sinoglory and Shenzhen Fortune.
Diversification Opportunities for Shandong Sinoglory and Shenzhen Fortune
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Shenzhen is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sinoglory Health and Shenzhen Fortune Trend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Fortune Trend and Shandong Sinoglory 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 Shandong Sinoglory Health are associated (or correlated) with Shenzhen Fortune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Fortune Trend has no effect on the direction of Shandong Sinoglory i.e., Shandong Sinoglory and Shenzhen Fortune go up and down completely randomly.
Pair Corralation between Shandong Sinoglory and Shenzhen Fortune
Assuming the 90 days trading horizon Shandong Sinoglory is expected to generate 5.33 times less return on investment than Shenzhen Fortune. But when comparing it to its historical volatility, Shandong Sinoglory Health is 2.72 times less risky than Shenzhen Fortune. It trades about 0.07 of its potential returns per unit of risk. Shenzhen Fortune Trend is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 7,415 in Shenzhen Fortune Trend on October 26, 2024 and sell it today you would earn a total of 8,658 from holding Shenzhen Fortune Trend or generate 116.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.18% |
| Values | Daily Returns |
Shandong Sinoglory Health vs. Shenzhen Fortune Trend
Performance |
| Timeline |
| Shandong Sinoglory Health |
| Shenzhen Fortune Trend |
Shandong Sinoglory and Shenzhen Fortune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sinoglory and Shenzhen Fortune
The main advantage of trading using opposite Shandong Sinoglory and Shenzhen Fortune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sinoglory position performs unexpectedly, Shenzhen Fortune 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 Fortune will offset losses from the drop in Shenzhen Fortune's long position.| Shandong Sinoglory vs. Kweichow Moutai Co | Shandong Sinoglory vs. Contemporary Amperex Technology | Shandong Sinoglory vs. G bits Network Technology | Shandong Sinoglory vs. Beijing Roborock Technology |
| Shenzhen Fortune vs. Jiangsu Phoenix Publishing | Shenzhen Fortune vs. Goodwill E Health | Shenzhen Fortune vs. Beijing Kaiwen Education | Shenzhen Fortune vs. Shandong Sinoglory Health |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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