Correlation Between Shanghai V-Test and Shenyang Blue
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By analyzing existing cross correlation between Shanghai V Test Semiconductor and Shenyang Blue Silver, you can compare the effects of market volatilities on Shanghai V-Test and Shenyang Blue 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 Shanghai V-Test with a short position of Shenyang Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai V-Test and Shenyang Blue.
Diversification Opportunities for Shanghai V-Test and Shenyang Blue
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Shenyang is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai V Test Semiconductor and Shenyang Blue Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Blue Silver and Shanghai V-Test 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 Shanghai V Test Semiconductor are associated (or correlated) with Shenyang Blue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Blue Silver has no effect on the direction of Shanghai V-Test i.e., Shanghai V-Test and Shenyang Blue go up and down completely randomly.
Pair Corralation between Shanghai V-Test and Shenyang Blue
Assuming the 90 days trading horizon Shanghai V Test Semiconductor is expected to generate 1.68 times more return on investment than Shenyang Blue. However, Shanghai V-Test is 1.68 times more volatile than Shenyang Blue Silver. It trades about 0.34 of its potential returns per unit of risk. Shenyang Blue Silver is currently generating about 0.17 per unit of risk. If you would invest 6,055 in Shanghai V Test Semiconductor on November 8, 2024 and sell it today you would earn a total of 1,581 from holding Shanghai V Test Semiconductor or generate 26.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai V Test Semiconductor vs. Shenyang Blue Silver
Performance |
| Timeline |
| Shanghai V Test |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Shenyang Blue Silver |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shanghai V-Test and Shenyang Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai V-Test and Shenyang Blue
The main advantage of trading using opposite Shanghai V-Test and Shenyang Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai V-Test position performs unexpectedly, Shenyang Blue 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 Shenyang Blue will offset losses from the drop in Shenyang Blue's long position.The idea behind Shanghai V Test Semiconductor and Shenyang Blue Silver 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.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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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