Correlation Between Shenzhen Fortune and Yingde Greatchem
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By analyzing existing cross correlation between Shenzhen Fortune Trend and Yingde Greatchem Chemicals, you can compare the effects of market volatilities on Shenzhen Fortune and Yingde Greatchem 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 Yingde Greatchem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Fortune and Yingde Greatchem.
Diversification Opportunities for Shenzhen Fortune and Yingde Greatchem
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Yingde is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Fortune Trend and Yingde Greatchem Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yingde Greatchem Che 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 Yingde Greatchem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yingde Greatchem Che has no effect on the direction of Shenzhen Fortune i.e., Shenzhen Fortune and Yingde Greatchem go up and down completely randomly.
Pair Corralation between Shenzhen Fortune and Yingde Greatchem
Assuming the 90 days trading horizon Shenzhen Fortune Trend is expected to generate 2.67 times more return on investment than Yingde Greatchem. However, Shenzhen Fortune is 2.67 times more volatile than Yingde Greatchem Chemicals. It trades about 0.05 of its potential returns per unit of risk. Yingde Greatchem Chemicals is currently generating about -0.03 per unit of risk. If you would invest 15,550 in Shenzhen Fortune Trend on August 29, 2024 and sell it today you would earn a total of 431.00 from holding Shenzhen Fortune Trend or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Fortune Trend vs. Yingde Greatchem Chemicals
Performance |
| Timeline |
| Shenzhen Fortune Trend |
| Yingde Greatchem Che |
Shenzhen Fortune and Yingde Greatchem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Fortune and Yingde Greatchem
The main advantage of trading using opposite Shenzhen Fortune and Yingde Greatchem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Fortune position performs unexpectedly, Yingde Greatchem 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 Yingde Greatchem will offset losses from the drop in Yingde Greatchem's long position.| Shenzhen Fortune vs. Agricultural Bank of | Shenzhen Fortune vs. Industrial and Commercial | Shenzhen Fortune vs. Bank of China | Shenzhen Fortune vs. PetroChina Co Ltd |
| Yingde Greatchem vs. Xingguang Agricultural Mach | Yingde Greatchem vs. Anhui Deli Household | Yingde Greatchem vs. Long Yuan Construction | Yingde Greatchem vs. Lutian Machinery 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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