Correlation Between Shenzhen Fortune and Yunnan Jianzhijia
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By analyzing existing cross correlation between Shenzhen Fortune Trend and Yunnan Jianzhijia Health Chain, you can compare the effects of market volatilities on Shenzhen Fortune and Yunnan Jianzhijia 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 Yunnan Jianzhijia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Fortune and Yunnan Jianzhijia.
Diversification Opportunities for Shenzhen Fortune and Yunnan Jianzhijia
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Yunnan is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Fortune Trend and Yunnan Jianzhijia Health Chain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Jianzhijia 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 Yunnan Jianzhijia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Jianzhijia has no effect on the direction of Shenzhen Fortune i.e., Shenzhen Fortune and Yunnan Jianzhijia go up and down completely randomly.
Pair Corralation between Shenzhen Fortune and Yunnan Jianzhijia
Assuming the 90 days trading horizon Shenzhen Fortune Trend is expected to generate 1.35 times more return on investment than Yunnan Jianzhijia. However, Shenzhen Fortune is 1.35 times more volatile than Yunnan Jianzhijia Health Chain. It trades about 0.07 of its potential returns per unit of risk. Yunnan Jianzhijia Health Chain is currently generating about -0.03 per unit of risk. If you would invest 18,570 in Shenzhen Fortune Trend on September 12, 2024 and sell it today you would earn a total of 1,018 from holding Shenzhen Fortune Trend or generate 5.48% 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. Yunnan Jianzhijia Health Chain
Performance |
| Timeline |
| Shenzhen Fortune Trend |
| Yunnan Jianzhijia |
Shenzhen Fortune and Yunnan Jianzhijia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Fortune and Yunnan Jianzhijia
The main advantage of trading using opposite Shenzhen Fortune and Yunnan Jianzhijia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Fortune position performs unexpectedly, Yunnan Jianzhijia 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 Yunnan Jianzhijia will offset losses from the drop in Yunnan Jianzhijia's long position.| Shenzhen Fortune vs. Sichuan Yahua Industrial | Shenzhen Fortune vs. Pengxin International Mining | Shenzhen Fortune vs. Ningbo Ligong Online | Shenzhen Fortune vs. Ye Chiu Metal |
| Yunnan Jianzhijia vs. China Petroleum Chemical | Yunnan Jianzhijia vs. PetroChina Co Ltd | Yunnan Jianzhijia vs. China State Construction | Yunnan Jianzhijia vs. China Railway Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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