Correlation Between Shanghai Lingyun and Shenzhen Sunlord
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By analyzing existing cross correlation between Shanghai Lingyun Industries and Shenzhen Sunlord Electronics, you can compare the effects of market volatilities on Shanghai Lingyun and Shenzhen Sunlord 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 Lingyun with a short position of Shenzhen Sunlord. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Lingyun and Shenzhen Sunlord.
Diversification Opportunities for Shanghai Lingyun and Shenzhen Sunlord
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Shenzhen is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Lingyun Industries and Shenzhen Sunlord Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Sunlord Ele and Shanghai Lingyun 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 Lingyun Industries are associated (or correlated) with Shenzhen Sunlord. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Sunlord Ele has no effect on the direction of Shanghai Lingyun i.e., Shanghai Lingyun and Shenzhen Sunlord go up and down completely randomly.
Pair Corralation between Shanghai Lingyun and Shenzhen Sunlord
Assuming the 90 days trading horizon Shanghai Lingyun Industries is expected to under-perform the Shenzhen Sunlord. In addition to that, Shanghai Lingyun is 1.64 times more volatile than Shenzhen Sunlord Electronics. It trades about -0.01 of its total potential returns per unit of risk. Shenzhen Sunlord Electronics is currently generating about 0.03 per unit of volatility. If you would invest 2,622 in Shenzhen Sunlord Electronics on September 3, 2024 and sell it today you would earn a total of 484.00 from holding Shenzhen Sunlord Electronics or generate 18.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Lingyun Industries vs. Shenzhen Sunlord Electronics
Performance |
| Timeline |
| Shanghai Lingyun Ind |
| Shenzhen Sunlord Ele |
Shanghai Lingyun and Shenzhen Sunlord Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Lingyun and Shenzhen Sunlord
The main advantage of trading using opposite Shanghai Lingyun and Shenzhen Sunlord positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Lingyun position performs unexpectedly, Shenzhen Sunlord 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 Sunlord will offset losses from the drop in Shenzhen Sunlord's long position.| Shanghai Lingyun vs. Industrial and Commercial | Shanghai Lingyun vs. Agricultural Bank of | Shanghai Lingyun vs. China Construction Bank | Shanghai Lingyun vs. Bank of China |
| Shenzhen Sunlord vs. Semiconductor Manufacturing Electronics | Shenzhen Sunlord vs. Eastroc Beverage Group | Shenzhen Sunlord vs. Chongqing Brewery Co | Shenzhen Sunlord vs. Jinling Hotel Corp |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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