Correlation Between Sinocelltech and Shenzhen MTC
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By analyzing existing cross correlation between Sinocelltech Group and Shenzhen MTC Co, you can compare the effects of market volatilities on Sinocelltech and Shenzhen MTC 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 Sinocelltech with a short position of Shenzhen MTC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinocelltech and Shenzhen MTC.
Diversification Opportunities for Sinocelltech and Shenzhen MTC
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sinocelltech and Shenzhen is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Sinocelltech Group and Shenzhen MTC Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MTC and Sinocelltech 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 Sinocelltech Group are associated (or correlated) with Shenzhen MTC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MTC has no effect on the direction of Sinocelltech i.e., Sinocelltech and Shenzhen MTC go up and down completely randomly.
Pair Corralation between Sinocelltech and Shenzhen MTC
Assuming the 90 days trading horizon Sinocelltech Group is expected to under-perform the Shenzhen MTC. In addition to that, Sinocelltech is 1.19 times more volatile than Shenzhen MTC Co. It trades about -0.03 of its total potential returns per unit of risk. Shenzhen MTC Co is currently generating about 0.03 per unit of volatility. If you would invest 433.00 in Shenzhen MTC Co on November 27, 2024 and sell it today you would earn a total of 122.00 from holding Shenzhen MTC Co or generate 28.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinocelltech Group vs. Shenzhen MTC Co
Performance |
| Timeline |
| Sinocelltech Group |
| Shenzhen MTC |
Sinocelltech and Shenzhen MTC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinocelltech and Shenzhen MTC
The main advantage of trading using opposite Sinocelltech and Shenzhen MTC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinocelltech position performs unexpectedly, Shenzhen MTC 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 Shenzhen MTC will offset losses from the drop in Shenzhen MTC's long position.| Sinocelltech vs. Xiamen Insight Investment | Sinocelltech vs. Harson Trading China | Sinocelltech vs. Jiahe Foods Industry | Sinocelltech vs. Nuode Investment Co |
| Shenzhen MTC vs. Harbin Hatou Investment | Shenzhen MTC vs. Allwin Telecommunication Co | Shenzhen MTC vs. China Asset Management | Shenzhen MTC vs. Fiberhome Telecommunication Technologies |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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