Correlation Between Shanghai Rongtai and Shenzhen MYS
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By analyzing existing cross correlation between Shanghai Rongtai Health and Shenzhen MYS Environmental, you can compare the effects of market volatilities on Shanghai Rongtai and Shenzhen MYS 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 Rongtai with a short position of Shenzhen MYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Rongtai and Shenzhen MYS.
Diversification Opportunities for Shanghai Rongtai and Shenzhen MYS
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 Rongtai Health and Shenzhen MYS Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MYS Environ and Shanghai Rongtai 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 Rongtai Health are associated (or correlated) with Shenzhen MYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MYS Environ has no effect on the direction of Shanghai Rongtai i.e., Shanghai Rongtai and Shenzhen MYS go up and down completely randomly.
Pair Corralation between Shanghai Rongtai and Shenzhen MYS
Assuming the 90 days trading horizon Shanghai Rongtai Health is expected to under-perform the Shenzhen MYS. In addition to that, Shanghai Rongtai is 1.11 times more volatile than Shenzhen MYS Environmental. It trades about -0.02 of its total potential returns per unit of risk. Shenzhen MYS Environmental is currently generating about 0.03 per unit of volatility. If you would invest 295.00 in Shenzhen MYS Environmental on August 26, 2024 and sell it today you would earn a total of 80.00 from holding Shenzhen MYS Environmental or generate 27.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Rongtai Health vs. Shenzhen MYS Environmental
Performance |
| Timeline |
| Shanghai Rongtai Health |
| Shenzhen MYS Environ |
Shanghai Rongtai and Shenzhen MYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Rongtai and Shenzhen MYS
The main advantage of trading using opposite Shanghai Rongtai and Shenzhen MYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Rongtai position performs unexpectedly, Shenzhen MYS 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 MYS will offset losses from the drop in Shenzhen MYS's long position.| Shanghai Rongtai vs. Shenzhen MYS Environmental | Shanghai Rongtai vs. AVIC Fund Management | Shanghai Rongtai vs. Shenzhen Bingchuan Network | Shanghai Rongtai vs. Penghua Shenzhen Energy |
| Shenzhen MYS vs. PKU HealthCare Corp | Shenzhen MYS vs. Eastroc Beverage Group | Shenzhen MYS vs. Youngy Health Co | Shenzhen MYS vs. Tongxing Environmental Protection |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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