Correlation Between Shenzhen Fortune and Beijing Scitop
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By analyzing existing cross correlation between Shenzhen Fortune Trend and Beijing Scitop Bio, you can compare the effects of market volatilities on Shenzhen Fortune and Beijing Scitop 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 Beijing Scitop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Fortune and Beijing Scitop.
Diversification Opportunities for Shenzhen Fortune and Beijing Scitop
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Beijing is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Fortune Trend and Beijing Scitop Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Scitop Bio 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 Beijing Scitop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Scitop Bio has no effect on the direction of Shenzhen Fortune i.e., Shenzhen Fortune and Beijing Scitop go up and down completely randomly.
Pair Corralation between Shenzhen Fortune and Beijing Scitop
Assuming the 90 days trading horizon Shenzhen Fortune Trend is expected to generate 2.43 times more return on investment than Beijing Scitop. However, Shenzhen Fortune is 2.43 times more volatile than Beijing Scitop Bio. It trades about 0.13 of its potential returns per unit of risk. Beijing Scitop Bio is currently generating about 0.15 per unit of risk. If you would invest 15,280 in Shenzhen Fortune Trend on September 1, 2024 and sell it today you would earn a total of 2,343 from holding Shenzhen Fortune Trend or generate 15.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Fortune Trend vs. Beijing Scitop Bio
Performance |
| Timeline |
| Shenzhen Fortune Trend |
| Beijing Scitop Bio |
Shenzhen Fortune and Beijing Scitop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Fortune and Beijing Scitop
The main advantage of trading using opposite Shenzhen Fortune and Beijing Scitop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Fortune position performs unexpectedly, Beijing Scitop 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 Beijing Scitop will offset losses from the drop in Beijing Scitop's long position.| Shenzhen Fortune vs. Ming Yang Smart | Shenzhen Fortune vs. 159681 | Shenzhen Fortune vs. 159005 | Shenzhen Fortune vs. Loctek Ergonomic Technology |
| Beijing Scitop vs. China Life Insurance | Beijing Scitop vs. Zhengzhou Coal Mining | Beijing Scitop vs. Lootom Telcovideo Network | Beijing Scitop vs. Huaibei Mining Holdings |
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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