Correlation Between Shenzhen Investment and Two Harbors
Can any of the company-specific risk be diversified away by investing in both Shenzhen Investment and Two Harbors 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 Two Harbors 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 Two Harbors Investments, you can compare the effects of market volatilities on Shenzhen Investment and Two Harbors 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 Two Harbors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Investment and Two Harbors.
Diversification Opportunities for Shenzhen Investment and Two Harbors
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shenzhen and Two is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Investment Holdings and Two Harbors Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Two Harbors Investments 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 Two Harbors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Two Harbors Investments has no effect on the direction of Shenzhen Investment i.e., Shenzhen Investment and Two Harbors go up and down completely randomly.
Pair Corralation between Shenzhen Investment and Two Harbors
Assuming the 90 days horizon Shenzhen Investment Holdings is expected to generate 1.93 times more return on investment than Two Harbors. However, Shenzhen Investment is 1.93 times more volatile than Two Harbors Investments. It trades about 0.04 of its potential returns per unit of risk. Two Harbors Investments is currently generating about 0.05 per unit of risk. If you would invest 17.00 in Shenzhen Investment Holdings on December 2, 2024 and sell it today you would earn a total of 5.00 from holding Shenzhen Investment Holdings or generate 29.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Shenzhen Investment Holdings vs. Two Harbors Investments
Performance |
| Timeline |
| Shenzhen Investment |
| Two Harbors Investments |
Shenzhen Investment and Two Harbors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Investment and Two Harbors
The main advantage of trading using opposite Shenzhen Investment and Two Harbors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Investment position performs unexpectedly, Two Harbors 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 Two Harbors will offset losses from the drop in Two Harbors' long position.| Shenzhen Investment vs. Jiangsu Expressway Co | ||
| Shenzhen Investment vs. Jiangsu Expressway | ||
| Shenzhen Investment vs. Zhejiang Expressway Co | ||
| Shenzhen Investment vs. Yuexiu Transport Infrastructure |
| Two Harbors vs. Park Electrochemical | ||
| Two Harbors vs. Aldel Financial II | ||
| Two Harbors vs. Falcon Metals Limited | ||
| Two Harbors 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |