Correlation Between Shenzhen MYS and Ningbo David
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By analyzing existing cross correlation between Shenzhen MYS Environmental and Ningbo David Medical, you can compare the effects of market volatilities on Shenzhen MYS and Ningbo David 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 MYS with a short position of Ningbo David. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Ningbo David.
Diversification Opportunities for Shenzhen MYS and Ningbo David
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Ningbo is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and Ningbo David Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo David Medical and Shenzhen MYS 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 MYS Environmental are associated (or correlated) with Ningbo David. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo David Medical has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and Ningbo David go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Ningbo David
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 0.92 times more return on investment than Ningbo David. However, Shenzhen MYS Environmental is 1.08 times less risky than Ningbo David. It trades about 0.18 of its potential returns per unit of risk. Ningbo David Medical is currently generating about 0.1 per unit of risk. If you would invest 257.00 in Shenzhen MYS Environmental on September 23, 2024 and sell it today you would earn a total of 120.00 from holding Shenzhen MYS Environmental or generate 46.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen MYS Environmental vs. Ningbo David Medical
Performance |
Timeline |
Shenzhen MYS Environ |
Ningbo David Medical |
Shenzhen MYS and Ningbo David Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen MYS and Ningbo David
The main advantage of trading using opposite Shenzhen MYS and Ningbo David positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, Ningbo David 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 Ningbo David will offset losses from the drop in Ningbo David's long position.Shenzhen MYS vs. Zijin Mining Group | Shenzhen MYS vs. Wanhua Chemical Group | Shenzhen MYS vs. Baoshan Iron Steel | Shenzhen MYS vs. Shandong Gold Mining |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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