Correlation Between Shanghai Shuixing and Shenzhen Centralcon
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By analyzing existing cross correlation between Shanghai Shuixing Home and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on Shanghai Shuixing and Shenzhen Centralcon 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 Shanghai Shuixing with a short position of Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shuixing and Shenzhen Centralcon.
Diversification Opportunities for Shanghai Shuixing and Shenzhen Centralcon
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Shenzhen is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shuixing Home and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon and Shanghai Shuixing 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 Shanghai Shuixing Home are associated (or correlated) with Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of Shanghai Shuixing i.e., Shanghai Shuixing and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between Shanghai Shuixing and Shenzhen Centralcon
Assuming the 90 days trading horizon Shanghai Shuixing Home is expected to generate 0.65 times more return on investment than Shenzhen Centralcon. However, Shanghai Shuixing Home is 1.54 times less risky than Shenzhen Centralcon. It trades about 0.03 of its potential returns per unit of risk. Shenzhen Centralcon Investment is currently generating about 0.0 per unit of risk. If you would invest 1,424 in Shanghai Shuixing Home on September 1, 2024 and sell it today you would earn a total of 220.00 from holding Shanghai Shuixing Home or generate 15.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Shuixing Home vs. Shenzhen Centralcon Investment
Performance |
| Timeline |
| Shanghai Shuixing Home |
| Shenzhen Centralcon |
Shanghai Shuixing and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Shuixing and Shenzhen Centralcon
The main advantage of trading using opposite Shanghai Shuixing and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shuixing position performs unexpectedly, Shenzhen Centralcon 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 Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.| Shanghai Shuixing vs. Chengdu Kanghua Biological | Shanghai Shuixing vs. Beijing Wantai Biological | Shanghai Shuixing vs. Suzhou Novoprotein Scientific | Shanghai Shuixing vs. Aluminum Corp of |
| Shenzhen Centralcon vs. Anhui Huilong Agricultural | Shenzhen Centralcon vs. Huitong Construction Group | Shenzhen Centralcon vs. Kuangda Technology Group | Shenzhen Centralcon vs. Allied Machinery Co |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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