Correlation Between Astar and Shenzhen Coship
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By analyzing existing cross correlation between Astar and Shenzhen Coship Electronics, you can compare the effects of market volatilities on Astar and Shenzhen Coship 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 Astar with a short position of Shenzhen Coship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astar and Shenzhen Coship.
Diversification Opportunities for Astar and Shenzhen Coship
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Astar and Shenzhen is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Astar and Shenzhen Coship Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Coship Elec and Astar 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 Astar are associated (or correlated) with Shenzhen Coship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Coship Elec has no effect on the direction of Astar i.e., Astar and Shenzhen Coship go up and down completely randomly.
Pair Corralation between Astar and Shenzhen Coship
Assuming the 90 days trading horizon Astar is expected to generate 2.47 times more return on investment than Shenzhen Coship. However, Astar is 2.47 times more volatile than Shenzhen Coship Electronics. It trades about 0.04 of its potential returns per unit of risk. Shenzhen Coship Electronics is currently generating about 0.09 per unit of risk. If you would invest 4.70 in Astar on October 11, 2024 and sell it today you would earn a total of 1.42 from holding Astar or generate 30.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 62.66% |
| Values | Daily Returns |
Astar vs. Shenzhen Coship Electronics
Performance |
| Timeline |
| Astar |
| Shenzhen Coship Elec |
Astar and Shenzhen Coship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astar and Shenzhen Coship
The main advantage of trading using opposite Astar and Shenzhen Coship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astar position performs unexpectedly, Shenzhen Coship 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 Coship will offset losses from the drop in Shenzhen Coship's long position.The idea behind Astar and Shenzhen Coship Electronics 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.| Shenzhen Coship vs. Porton Fine Chemicals | Shenzhen Coship vs. Ingenic Semiconductor | Shenzhen Coship vs. Peoples Insurance of | Shenzhen Coship vs. Ping An Insurance |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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