Correlation Between Shenzhen Fortune and Xilinmen Furniture
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By analyzing existing cross correlation between Shenzhen Fortune Trend and Xilinmen Furniture Co, you can compare the effects of market volatilities on Shenzhen Fortune and Xilinmen Furniture 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 Xilinmen Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Fortune and Xilinmen Furniture.
Diversification Opportunities for Shenzhen Fortune and Xilinmen Furniture
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Xilinmen is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Fortune Trend and Xilinmen Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xilinmen Furniture 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 Xilinmen Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xilinmen Furniture has no effect on the direction of Shenzhen Fortune i.e., Shenzhen Fortune and Xilinmen Furniture go up and down completely randomly.
Pair Corralation between Shenzhen Fortune and Xilinmen Furniture
Assuming the 90 days trading horizon Shenzhen Fortune Trend is expected to generate 2.08 times more return on investment than Xilinmen Furniture. However, Shenzhen Fortune is 2.08 times more volatile than Xilinmen Furniture Co. It trades about 0.06 of its potential returns per unit of risk. Xilinmen Furniture Co is currently generating about -0.02 per unit of risk. If you would invest 10,246 in Shenzhen Fortune Trend on September 4, 2024 and sell it today you would earn a total of 7,764 from holding Shenzhen Fortune Trend or generate 75.78% 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. Xilinmen Furniture Co
Performance |
| Timeline |
| Shenzhen Fortune Trend |
| Xilinmen Furniture |
Shenzhen Fortune and Xilinmen Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Fortune and Xilinmen Furniture
The main advantage of trading using opposite Shenzhen Fortune and Xilinmen Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Fortune position performs unexpectedly, Xilinmen Furniture 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 Xilinmen Furniture will offset losses from the drop in Xilinmen Furniture's long position.| Shenzhen Fortune vs. Qijing Machinery | Shenzhen Fortune vs. StarPower Semiconductor | Shenzhen Fortune vs. Shandong Mining Machinery | Shenzhen Fortune vs. Shaanxi Construction Machinery |
| Xilinmen Furniture vs. Industrial and Commercial | Xilinmen Furniture vs. Agricultural Bank of | Xilinmen Furniture vs. China Construction Bank | Xilinmen Furniture vs. Bank of China |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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