Correlation Between Shenzhen Noposion and Strait Innovation
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Strait Innovation Internet, you can compare the effects of market volatilities on Shenzhen Noposion and Strait Innovation 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 Noposion with a short position of Strait Innovation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Strait Innovation.
Diversification Opportunities for Shenzhen Noposion and Strait Innovation
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Strait is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical and Strait Innovation Internet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strait Innovation and Shenzhen Noposion 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 Noposion Agrochemicals are associated (or correlated) with Strait Innovation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strait Innovation has no effect on the direction of Shenzhen Noposion i.e., Shenzhen Noposion and Strait Innovation go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Strait Innovation
Assuming the 90 days trading horizon Shenzhen Noposion is expected to generate 1.73 times less return on investment than Strait Innovation. But when comparing it to its historical volatility, Shenzhen Noposion Agrochemicals is 1.74 times less risky than Strait Innovation. It trades about 0.23 of its potential returns per unit of risk. Strait Innovation Internet is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 156.00 in Strait Innovation Internet on September 25, 2024 and sell it today you would earn a total of 133.00 from holding Strait Innovation Internet or generate 85.26% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. Strait Innovation Internet
Performance |
Timeline |
Shenzhen Noposion |
Strait Innovation |
Shenzhen Noposion and Strait Innovation Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Noposion and Strait Innovation
The main advantage of trading using opposite Shenzhen Noposion and Strait Innovation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion position performs unexpectedly, Strait Innovation 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 Strait Innovation will offset losses from the drop in Strait Innovation's long position.Shenzhen Noposion vs. Zijin Mining Group | Shenzhen Noposion vs. Wanhua Chemical Group | Shenzhen Noposion vs. Baoshan Iron Steel | Shenzhen Noposion vs. Shandong Gold Mining |
Strait Innovation vs. Guangzhou Jointas Chemical | Strait Innovation vs. Shenzhen Noposion Agrochemicals | Strait Innovation vs. Sichuan Hebang Biotechnology | Strait Innovation vs. Wuhan Hvsen Biotechnology |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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