Correlation Between AIMA Technology and Shenzhen SDG
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By analyzing existing cross correlation between AIMA Technology Group and Shenzhen SDG Information, you can compare the effects of market volatilities on AIMA Technology and Shenzhen SDG 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 AIMA Technology with a short position of Shenzhen SDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIMA Technology and Shenzhen SDG.
Diversification Opportunities for AIMA Technology and Shenzhen SDG
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AIMA and Shenzhen is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding AIMA Technology Group and Shenzhen SDG Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen SDG Information and AIMA Technology 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 AIMA Technology Group are associated (or correlated) with Shenzhen SDG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen SDG Information has no effect on the direction of AIMA Technology i.e., AIMA Technology and Shenzhen SDG go up and down completely randomly.
Pair Corralation between AIMA Technology and Shenzhen SDG
Assuming the 90 days trading horizon AIMA Technology Group is expected to under-perform the Shenzhen SDG. In addition to that, AIMA Technology is 1.39 times more volatile than Shenzhen SDG Information. It trades about -0.18 of its total potential returns per unit of risk. Shenzhen SDG Information is currently generating about 0.59 per unit of volatility. If you would invest 562.00 in Shenzhen SDG Information on November 27, 2024 and sell it today you would earn a total of 87.00 from holding Shenzhen SDG Information or generate 15.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.75% |
| Values | Daily Returns |
AIMA Technology Group vs. Shenzhen SDG Information
Performance |
| Timeline |
| AIMA Technology Group |
| Shenzhen SDG Information |
AIMA Technology and Shenzhen SDG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIMA Technology and Shenzhen SDG
The main advantage of trading using opposite AIMA Technology and Shenzhen SDG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIMA Technology position performs unexpectedly, Shenzhen SDG 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 SDG will offset losses from the drop in Shenzhen SDG's long position.| AIMA Technology vs. Dongguan Tarry Electronics | AIMA Technology vs. Pengxin International Mining | AIMA Technology vs. Fujian Nebula Electronics | AIMA Technology vs. Huizhou Speed Wireless |
| Shenzhen SDG vs. China Mobile Limited | Shenzhen SDG vs. Huizhou Speed Wireless | Shenzhen SDG vs. China World Trade | Shenzhen SDG vs. Shandong Longquan Pipeline |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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