Correlation Between Shenzhen Fortune and Shandong Publishing
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By analyzing existing cross correlation between Shenzhen Fortune Trend and Shandong Publishing Media, you can compare the effects of market volatilities on Shenzhen Fortune and Shandong Publishing 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 Shandong Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Fortune and Shandong Publishing.
Diversification Opportunities for Shenzhen Fortune and Shandong Publishing
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shenzhen and Shandong is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Fortune Trend and Shandong Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Publishing Media 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 Shandong Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Publishing Media has no effect on the direction of Shenzhen Fortune i.e., Shenzhen Fortune and Shandong Publishing go up and down completely randomly.
Pair Corralation between Shenzhen Fortune and Shandong Publishing
Assuming the 90 days trading horizon Shenzhen Fortune Trend is expected to generate 2.39 times more return on investment than Shandong Publishing. However, Shenzhen Fortune is 2.39 times more volatile than Shandong Publishing Media. It trades about 0.09 of its potential returns per unit of risk. Shandong Publishing Media is currently generating about 0.01 per unit of risk. If you would invest 10,279 in Shenzhen Fortune Trend on September 3, 2024 and sell it today you would earn a total of 7,344 from holding Shenzhen Fortune Trend or generate 71.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Fortune Trend vs. Shandong Publishing Media
Performance |
| Timeline |
| Shenzhen Fortune Trend |
| Shandong Publishing Media |
Shenzhen Fortune and Shandong Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Fortune and Shandong Publishing
The main advantage of trading using opposite Shenzhen Fortune and Shandong Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Fortune position performs unexpectedly, Shandong Publishing 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 Shandong Publishing will offset losses from the drop in Shandong Publishing's long position.| Shenzhen Fortune vs. Allmed Medical Products | Shenzhen Fortune vs. Allgens Medical Technology | Shenzhen Fortune vs. Chengdu Xingrong Investment | Shenzhen Fortune vs. Luyin Investment Group |
| Shandong Publishing vs. Gansu Jiu Steel | Shandong Publishing vs. Ming Yang Smart | Shandong Publishing vs. Aba Chemicals Corp | Shandong Publishing vs. Loctek Ergonomic Technology |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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