Correlation Between Shenzhen Fortune and Wuhan Yangtze
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By analyzing existing cross correlation between Shenzhen Fortune Trend and Wuhan Yangtze Communication, you can compare the effects of market volatilities on Shenzhen Fortune and Wuhan Yangtze 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 Wuhan Yangtze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Fortune and Wuhan Yangtze.
Diversification Opportunities for Shenzhen Fortune and Wuhan Yangtze
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Wuhan is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Fortune Trend and Wuhan Yangtze Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Yangtze Commun 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 Wuhan Yangtze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Yangtze Commun has no effect on the direction of Shenzhen Fortune i.e., Shenzhen Fortune and Wuhan Yangtze go up and down completely randomly.
Pair Corralation between Shenzhen Fortune and Wuhan Yangtze
If you would invest 0.00 in Shenzhen Fortune Trend on October 24, 2024 and sell it today you would earn a total of 0.00 from holding Shenzhen Fortune Trend or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Shenzhen Fortune Trend vs. Wuhan Yangtze Communication
Performance |
| Timeline |
| Shenzhen Fortune Trend |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Wuhan Yangtze Commun |
Shenzhen Fortune and Wuhan Yangtze Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Fortune and Wuhan Yangtze
The main advantage of trading using opposite Shenzhen Fortune and Wuhan Yangtze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Fortune position performs unexpectedly, Wuhan Yangtze 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 Wuhan Yangtze will offset losses from the drop in Wuhan Yangtze's long position.| Shenzhen Fortune vs. Shandong Publishing Media | Shenzhen Fortune vs. Xinhua Winshare Publishing | Shenzhen Fortune vs. Caihong Display Devices | Shenzhen Fortune vs. Tongyu Communication |
| Wuhan Yangtze vs. Duzhe Publishing Media | Wuhan Yangtze vs. Goodwill E Health | Wuhan Yangtze vs. Time Publishing and | Wuhan Yangtze vs. Jiangsu Phoenix Publishing |
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 Stocks Directory module to find actively traded stocks across global markets.
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