Correlation Between NYSE Composite and Shengkai Innovations
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Shengkai Innovations at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining NYSE Composite and Shengkai Innovations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Shengkai Innovations, you can compare the effects of market volatilities on NYSE Composite and Shengkai Innovations 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 NYSE Composite with a short position of Shengkai Innovations. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Shengkai Innovations.
Diversification Opportunities for NYSE Composite and Shengkai Innovations
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NYSE and Shengkai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Shengkai Innovations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengkai Innovations and NYSE Composite 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 NYSE Composite are associated (or correlated) with Shengkai Innovations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengkai Innovations has no effect on the direction of NYSE Composite i.e., NYSE Composite and Shengkai Innovations go up and down completely randomly.
Pair Corralation between NYSE Composite and Shengkai Innovations
If you would invest 1,605,225 in NYSE Composite on November 2, 2024 and sell it today you would earn a total of 411,397 from holding NYSE Composite or generate 25.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.2% |
| Values | Daily Returns |
NYSE Composite vs. Shengkai Innovations
Performance |
| Timeline |
NYSE Composite and Shengkai Innovations Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Shengkai Innovations
Pair trading matchups for Shengkai Innovations
Pair Trading with NYSE Composite and Shengkai Innovations
The main advantage of trading using opposite NYSE Composite and Shengkai Innovations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Shengkai Innovations 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 Shengkai Innovations will offset losses from the drop in Shengkai Innovations' long position.| NYSE Composite vs. Palomar Holdings | NYSE Composite vs. The Peoples Insurance | NYSE Composite vs. Radian Group | NYSE Composite vs. Nascent Wine |
| Shengkai Innovations vs. SmartStop Self Storage | Shengkai Innovations vs. Infosys Ltd ADR | Shengkai Innovations vs. Sapiens International | Shengkai Innovations vs. MYT Netherlands Parent |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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