Correlation Between 5I5j Holding and Shenzhen Sunlord
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By analyzing existing cross correlation between 5I5j Holding Group and Shenzhen Sunlord Electronics, you can compare the effects of market volatilities on 5I5j Holding 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 5I5j Holding with a short position of Shenzhen Sunlord. Check out your portfolio center. Please also check ongoing floating volatility patterns of 5I5j Holding and Shenzhen Sunlord.
Diversification Opportunities for 5I5j Holding and Shenzhen Sunlord
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 5I5j and Shenzhen is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding 5I5j Holding Group 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 5I5j Holding 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 5I5j Holding Group 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 5I5j Holding i.e., 5I5j Holding and Shenzhen Sunlord go up and down completely randomly.
Pair Corralation between 5I5j Holding and Shenzhen Sunlord
Assuming the 90 days trading horizon 5I5j Holding is expected to generate 1.21 times less return on investment than Shenzhen Sunlord. In addition to that, 5I5j Holding is 1.77 times more volatile than Shenzhen Sunlord Electronics. It trades about 0.09 of its total potential returns per unit of risk. Shenzhen Sunlord Electronics is currently generating about 0.19 per unit of volatility. If you would invest 2,474 in Shenzhen Sunlord Electronics on September 24, 2024 and sell it today you would earn a total of 801.00 from holding Shenzhen Sunlord Electronics or generate 32.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
5I5j Holding Group vs. Shenzhen Sunlord Electronics
Performance |
Timeline |
5I5j Holding Group |
Shenzhen Sunlord Ele |
5I5j Holding and Shenzhen Sunlord Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 5I5j Holding and Shenzhen Sunlord
The main advantage of trading using opposite 5I5j Holding and Shenzhen Sunlord positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 5I5j Holding 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.5I5j Holding vs. Guangdong Shenglu Telecommunication | 5I5j Holding vs. Allwin Telecommunication Co | 5I5j Holding vs. Jonjee Hi tech Industrial | 5I5j Holding vs. Wintao Communications Co |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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