Correlation Between Shenzhen Sunlord and Industrial
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By analyzing existing cross correlation between Shenzhen Sunlord Electronics and Industrial and Commercial, you can compare the effects of market volatilities on Shenzhen Sunlord and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Sunlord and Industrial.
Diversification Opportunities for Shenzhen Sunlord and Industrial
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Industrial is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Sunlord Electronics and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Shenzhen Sunlord i.e., Shenzhen Sunlord and Industrial go up and down completely randomly.
Pair Corralation between Shenzhen Sunlord and Industrial
Assuming the 90 days trading horizon Shenzhen Sunlord Electronics is expected to generate 1.89 times more return on investment than Industrial. However, Shenzhen Sunlord is 1.89 times more volatile than Industrial and Commercial. It trades about 0.19 of its potential returns per unit of risk. Industrial and Commercial is currently generating about 0.11 per unit of risk. 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 | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Sunlord Electronics vs. Industrial and Commercial
Performance |
Timeline |
Shenzhen Sunlord Ele |
Industrial and Commercial |
Shenzhen Sunlord and Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Sunlord and Industrial
The main advantage of trading using opposite Shenzhen Sunlord and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Sunlord position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial'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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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