Correlation Between AUPU Home and Shenzhen Fortune
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By analyzing existing cross correlation between AUPU Home Style and Shenzhen Fortune Trend, you can compare the effects of market volatilities on AUPU Home 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 AUPU Home with a short position of Shenzhen Fortune. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUPU Home and Shenzhen Fortune.
Diversification Opportunities for AUPU Home and Shenzhen Fortune
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AUPU and Shenzhen is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding AUPU Home Style 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 AUPU Home 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 AUPU Home Style 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 AUPU Home i.e., AUPU Home and Shenzhen Fortune go up and down completely randomly.
Pair Corralation between AUPU Home and Shenzhen Fortune
Assuming the 90 days trading horizon AUPU Home is expected to generate 4.43 times less return on investment than Shenzhen Fortune. But when comparing it to its historical volatility, AUPU Home Style is 2.14 times less risky than Shenzhen Fortune. It trades about 0.04 of its potential returns per unit of risk. Shenzhen Fortune Trend is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 5,893 in Shenzhen Fortune Trend on September 13, 2024 and sell it today you would earn a total of 13,041 from holding Shenzhen Fortune Trend or generate 221.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AUPU Home Style vs. Shenzhen Fortune Trend
Performance |
| Timeline |
| AUPU Home Style |
| Shenzhen Fortune Trend |
AUPU Home and Shenzhen Fortune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AUPU Home and Shenzhen Fortune
The main advantage of trading using opposite AUPU Home and Shenzhen Fortune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUPU Home 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.| AUPU Home vs. Lutian Machinery Co | AUPU Home vs. China Longyuan Power | AUPU Home vs. PetroChina Co Ltd | AUPU Home vs. Bank of China |
| Shenzhen Fortune vs. AUPU Home Style | Shenzhen Fortune vs. New Hope Dairy | Shenzhen Fortune vs. Xinjiang Tianrun Dairy | Shenzhen Fortune vs. Anji Foodstuff 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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