Correlation Between Yantai North and Shenzhen Fortune
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By analyzing existing cross correlation between Yantai North Andre and Shenzhen Fortune Trend, you can compare the effects of market volatilities on Yantai North 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 Yantai North with a short position of Shenzhen Fortune. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yantai North and Shenzhen Fortune.
Diversification Opportunities for Yantai North and Shenzhen Fortune
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yantai and Shenzhen is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Yantai North Andre 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 Yantai North 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 Yantai North Andre 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 Yantai North i.e., Yantai North and Shenzhen Fortune go up and down completely randomly.
Pair Corralation between Yantai North and Shenzhen Fortune
Assuming the 90 days trading horizon Yantai North Andre is expected to generate 0.47 times more return on investment than Shenzhen Fortune. However, Yantai North Andre is 2.15 times less risky than Shenzhen Fortune. It trades about 0.17 of its potential returns per unit of risk. Shenzhen Fortune Trend is currently generating about 0.06 per unit of risk. If you would invest 2,482 in Yantai North Andre on August 28, 2024 and sell it today you would earn a total of 248.00 from holding Yantai North Andre or generate 9.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yantai North Andre vs. Shenzhen Fortune Trend
Performance |
| Timeline |
| Yantai North Andre |
| Shenzhen Fortune Trend |
Yantai North and Shenzhen Fortune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yantai North and Shenzhen Fortune
The main advantage of trading using opposite Yantai North and Shenzhen Fortune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yantai North 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.| Yantai North vs. Industrial and Commercial | Yantai North vs. Kweichow Moutai Co | Yantai North vs. Agricultural Bank of | Yantai North vs. China Mobile Limited |
| Shenzhen Fortune vs. Agricultural Bank of | Shenzhen Fortune vs. Industrial and Commercial | Shenzhen Fortune vs. Bank of China | Shenzhen Fortune vs. PetroChina Co Ltd |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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