Correlation Between Shenzhen Fortune and ShuYu Civilian

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Can any of the company-specific risk be diversified away by investing in both Shenzhen Fortune and ShuYu Civilian at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Shenzhen Fortune and ShuYu Civilian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shenzhen Fortune Trend and ShuYu Civilian Pharmacy, you can compare the effects of market volatilities on Shenzhen Fortune and ShuYu Civilian 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 ShuYu Civilian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Fortune and ShuYu Civilian.

Diversification Opportunities for Shenzhen Fortune and ShuYu Civilian

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Shenzhen and ShuYu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Fortune Trend and ShuYu Civilian Pharmacy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ShuYu Civilian Pharmacy 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 ShuYu Civilian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ShuYu Civilian Pharmacy has no effect on the direction of Shenzhen Fortune i.e., Shenzhen Fortune and ShuYu Civilian go up and down completely randomly.

Pair Corralation between Shenzhen Fortune and ShuYu Civilian

If you would invest (100.00) in Shenzhen Fortune Trend on November 7, 2024 and sell it today you would earn a total of  100.00  from holding Shenzhen Fortune Trend or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Shenzhen Fortune Trend  vs.  ShuYu Civilian Pharmacy

 Performance 
       Timeline  
Shenzhen Fortune Trend 

Risk-Adjusted Performance

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Over the last 90 days Shenzhen Fortune Trend has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Shenzhen Fortune is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
ShuYu Civilian Pharmacy 

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days ShuYu Civilian Pharmacy has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Shenzhen Fortune and ShuYu Civilian Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Shenzhen Fortune and ShuYu Civilian

The main advantage of trading using opposite Shenzhen Fortune and ShuYu Civilian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Fortune position performs unexpectedly, ShuYu Civilian 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 ShuYu Civilian will offset losses from the drop in ShuYu Civilian's long position.
The idea behind Shenzhen Fortune Trend and ShuYu Civilian Pharmacy pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
ShuYu Civilian vs. Hunan Dajiaweikang Pharmaceutical
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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