Correlation Between Liaoning Dingjide and Shenzhen Genvict
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By analyzing existing cross correlation between Liaoning Dingjide Petrochemical and Shenzhen Genvict Technologies, you can compare the effects of market volatilities on Liaoning Dingjide and Shenzhen Genvict 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 Liaoning Dingjide with a short position of Shenzhen Genvict. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liaoning Dingjide and Shenzhen Genvict.
Diversification Opportunities for Liaoning Dingjide and Shenzhen Genvict
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Liaoning and Shenzhen is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Liaoning Dingjide Petrochemica and Shenzhen Genvict Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Genvict Tec and Liaoning Dingjide 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 Liaoning Dingjide Petrochemical are associated (or correlated) with Shenzhen Genvict. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Genvict Tec has no effect on the direction of Liaoning Dingjide i.e., Liaoning Dingjide and Shenzhen Genvict go up and down completely randomly.
Pair Corralation between Liaoning Dingjide and Shenzhen Genvict
Assuming the 90 days trading horizon Liaoning Dingjide Petrochemical is expected to under-perform the Shenzhen Genvict. But the stock apears to be less risky and, when comparing its historical volatility, Liaoning Dingjide Petrochemical is 1.63 times less risky than Shenzhen Genvict. The stock trades about -0.03 of its potential returns per unit of risk. The Shenzhen Genvict Technologies is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,591 in Shenzhen Genvict Technologies on December 2, 2024 and sell it today you would earn a total of 1,160 from holding Shenzhen Genvict Technologies or generate 72.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liaoning Dingjide Petrochemica vs. Shenzhen Genvict Technologies
Performance |
| Timeline |
| Liaoning Dingjide |
| Shenzhen Genvict Tec |
Liaoning Dingjide and Shenzhen Genvict Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liaoning Dingjide and Shenzhen Genvict
The main advantage of trading using opposite Liaoning Dingjide and Shenzhen Genvict positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liaoning Dingjide position performs unexpectedly, Shenzhen Genvict 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 Genvict will offset losses from the drop in Shenzhen Genvict's long position.| Liaoning Dingjide vs. Beijing Kingsoft Office | Liaoning Dingjide vs. Markor International Home | Liaoning Dingjide vs. Impulse Qingdao Health | Liaoning Dingjide vs. Andon Health Co |
| Shenzhen Genvict vs. Luyin Investment Group | Shenzhen Genvict vs. Nuode Investment Co | Shenzhen Genvict vs. Zotye Automobile Co | Shenzhen Genvict vs. Xiamen Insight Investment |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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