Correlation Between Shenzhen Fortune and Jiaozuo Wanfang
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By analyzing existing cross correlation between Shenzhen Fortune Trend and Jiaozuo Wanfang Aluminum, you can compare the effects of market volatilities on Shenzhen Fortune and Jiaozuo Wanfang 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 Shenzhen Fortune with a short position of Jiaozuo Wanfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Fortune and Jiaozuo Wanfang.
Diversification Opportunities for Shenzhen Fortune and Jiaozuo Wanfang
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and Jiaozuo is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Fortune Trend and Jiaozuo Wanfang Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiaozuo Wanfang Aluminum and Shenzhen Fortune 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 Shenzhen Fortune Trend are associated (or correlated) with Jiaozuo Wanfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiaozuo Wanfang Aluminum has no effect on the direction of Shenzhen Fortune i.e., Shenzhen Fortune and Jiaozuo Wanfang go up and down completely randomly.
Pair Corralation between Shenzhen Fortune and Jiaozuo Wanfang
Assuming the 90 days trading horizon Shenzhen Fortune Trend is expected to generate 1.91 times more return on investment than Jiaozuo Wanfang. However, Shenzhen Fortune is 1.91 times more volatile than Jiaozuo Wanfang Aluminum. It trades about 0.03 of its potential returns per unit of risk. Jiaozuo Wanfang Aluminum is currently generating about -0.04 per unit of risk. If you would invest 15,550 in Shenzhen Fortune Trend on October 26, 2024 and sell it today you would earn a total of 523.00 from holding Shenzhen Fortune Trend or generate 3.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Shenzhen Fortune Trend vs. Jiaozuo Wanfang Aluminum
Performance |
| Timeline |
| Shenzhen Fortune Trend |
| Jiaozuo Wanfang Aluminum |
Shenzhen Fortune and Jiaozuo Wanfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Fortune and Jiaozuo Wanfang
The main advantage of trading using opposite Shenzhen Fortune and Jiaozuo Wanfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Fortune position performs unexpectedly, Jiaozuo Wanfang 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 Jiaozuo Wanfang will offset losses from the drop in Jiaozuo Wanfang's long position.| Shenzhen Fortune vs. Jiangsu Phoenix Publishing | Shenzhen Fortune vs. Goodwill E Health | Shenzhen Fortune vs. Beijing Kaiwen Education | Shenzhen Fortune vs. Shandong Sinoglory Health |
| Jiaozuo Wanfang vs. Tsingtao Brewery Co | Jiaozuo Wanfang vs. Shandong Longquan Pipeline | Jiaozuo Wanfang vs. Maoming Petro Chemical Shihua | Jiaozuo Wanfang vs. XinJiang GuoTong 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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