Correlation Between Shenzhen Investment and Camrova Resources

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Shenzhen Investment and Camrova Resources 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 Shenzhen Investment and Camrova Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shenzhen Investment Holdings and Camrova Resources, you can compare the effects of market volatilities on Shenzhen Investment and Camrova Resources 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 Shenzhen Investment with a short position of Camrova Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Investment and Camrova Resources.

Diversification Opportunities for Shenzhen Investment and Camrova Resources

ShenzhenCamrovaDiversified AwayShenzhenCamrovaDiversified Away100%
-0.46
  Correlation Coefficient

Very good diversification

The 3 months correlation between Shenzhen and Camrova is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Investment Holdings and Camrova Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camrova Resources and Shenzhen Investment 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 Shenzhen Investment Holdings are associated (or correlated) with Camrova Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camrova Resources has no effect on the direction of Shenzhen Investment i.e., Shenzhen Investment and Camrova Resources go up and down completely randomly.

Pair Corralation between Shenzhen Investment and Camrova Resources

If you would invest  0.00  in Camrova Resources on November 23, 2024 and sell it today you would earn a total of  0.00  from holding Camrova Resources or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy97.44%
ValuesDaily Returns

Shenzhen Investment Holdings  vs.  Camrova Resources

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 1234
JavaScript chart by amCharts 3.21.15SHIHF BAJFF
       Timeline  
Shenzhen Investment 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Shenzhen Investment Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, Shenzhen Investment is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.210.2120.2140.2160.2180.22
Camrova Resources 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Camrova Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb

Shenzhen Investment and Camrova Resources Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-1.8-1.33-0.86-0.390.02410.460.931.41.872.34 0.20.40.60.81.01.2
JavaScript chart by amCharts 3.21.15SHIHF BAJFF
       Returns  

Pair Trading with Shenzhen Investment and Camrova Resources

The main advantage of trading using opposite Shenzhen Investment and Camrova Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Investment position performs unexpectedly, Camrova Resources 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 Camrova Resources will offset losses from the drop in Camrova Resources' long position.
The idea behind Shenzhen Investment Holdings and Camrova Resources 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.
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

Other Complementary Tools

Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios