Correlation Between Leaguer Shenzhen and China Zheshang
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By analyzing existing cross correlation between Leaguer Shenzhen MicroElectronics and China Zheshang Bank, you can compare the effects of market volatilities on Leaguer Shenzhen and China Zheshang 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 Leaguer Shenzhen with a short position of China Zheshang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leaguer Shenzhen and China Zheshang.
Diversification Opportunities for Leaguer Shenzhen and China Zheshang
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Leaguer and China is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Leaguer Shenzhen MicroElectron and China Zheshang Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Zheshang Bank and Leaguer Shenzhen 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 Leaguer Shenzhen MicroElectronics are associated (or correlated) with China Zheshang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Zheshang Bank has no effect on the direction of Leaguer Shenzhen i.e., Leaguer Shenzhen and China Zheshang go up and down completely randomly.
Pair Corralation between Leaguer Shenzhen and China Zheshang
Assuming the 90 days trading horizon Leaguer Shenzhen MicroElectronics is expected to generate 2.67 times more return on investment than China Zheshang. However, Leaguer Shenzhen is 2.67 times more volatile than China Zheshang Bank. It trades about 0.02 of its potential returns per unit of risk. China Zheshang Bank is currently generating about 0.02 per unit of risk. If you would invest 2,695 in Leaguer Shenzhen MicroElectronics on September 13, 2024 and sell it today you would earn a total of 260.00 from holding Leaguer Shenzhen MicroElectronics or generate 9.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Leaguer Shenzhen MicroElectron vs. China Zheshang Bank
Performance |
| Timeline |
| Leaguer Shenzhen Mic |
| China Zheshang Bank |
Leaguer Shenzhen and China Zheshang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leaguer Shenzhen and China Zheshang
The main advantage of trading using opposite Leaguer Shenzhen and China Zheshang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leaguer Shenzhen position performs unexpectedly, China Zheshang 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 China Zheshang will offset losses from the drop in China Zheshang's long position.| Leaguer Shenzhen vs. Nanjing Putian Telecommunications | Leaguer Shenzhen vs. Tianjin Realty Development | Leaguer Shenzhen vs. Kangyue Technology Co | Leaguer Shenzhen vs. Shenzhen Hifuture Electric |
| China Zheshang vs. Puyang Huicheng Electronic | China Zheshang vs. Shanghai Shuixing Home | China Zheshang vs. Nanxing Furniture Machinery | China Zheshang vs. Leaguer Shenzhen MicroElectronics |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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