Correlation Between Shenzhen Sunlord and Yunnan Chuangxin
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By analyzing existing cross correlation between Shenzhen Sunlord Electronics and Yunnan Chuangxin New, you can compare the effects of market volatilities on Shenzhen Sunlord and Yunnan Chuangxin 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 Sunlord with a short position of Yunnan Chuangxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Sunlord and Yunnan Chuangxin.
Diversification Opportunities for Shenzhen Sunlord and Yunnan Chuangxin
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Yunnan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Sunlord Electronics and Yunnan Chuangxin New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Chuangxin New and Shenzhen Sunlord 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 Sunlord Electronics are associated (or correlated) with Yunnan Chuangxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Chuangxin New has no effect on the direction of Shenzhen Sunlord i.e., Shenzhen Sunlord and Yunnan Chuangxin go up and down completely randomly.
Pair Corralation between Shenzhen Sunlord and Yunnan Chuangxin
Assuming the 90 days trading horizon Shenzhen Sunlord Electronics is expected to generate 0.69 times more return on investment than Yunnan Chuangxin. However, Shenzhen Sunlord Electronics is 1.45 times less risky than Yunnan Chuangxin. It trades about 0.22 of its potential returns per unit of risk. Yunnan Chuangxin New is currently generating about 0.15 per unit of risk. If you would invest 2,296 in Shenzhen Sunlord Electronics on September 23, 2024 and sell it today you would earn a total of 979.00 from holding Shenzhen Sunlord Electronics or generate 42.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Sunlord Electronics vs. Yunnan Chuangxin New
Performance |
Timeline |
Shenzhen Sunlord Ele |
Yunnan Chuangxin New |
Shenzhen Sunlord and Yunnan Chuangxin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Sunlord and Yunnan Chuangxin
The main advantage of trading using opposite Shenzhen Sunlord and Yunnan Chuangxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Sunlord position performs unexpectedly, Yunnan Chuangxin 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 Yunnan Chuangxin will offset losses from the drop in Yunnan Chuangxin's long position.Shenzhen Sunlord vs. Industrial and Commercial | Shenzhen Sunlord vs. China Construction Bank | Shenzhen Sunlord vs. Agricultural Bank of | Shenzhen Sunlord vs. Bank of China |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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