Correlation Between Shenzhen MYS and Fujian Nanwang
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By analyzing existing cross correlation between Shenzhen MYS Environmental and Fujian Nanwang Environment, you can compare the effects of market volatilities on Shenzhen MYS and Fujian Nanwang 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 Fujian Nanwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Fujian Nanwang.
Diversification Opportunities for Shenzhen MYS and Fujian Nanwang
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Fujian is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and Fujian Nanwang Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Nanwang Envir 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 Fujian Nanwang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Nanwang Envir has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and Fujian Nanwang go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Fujian Nanwang
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 1.31 times more return on investment than Fujian Nanwang. However, Shenzhen MYS is 1.31 times more volatile than Fujian Nanwang Environment. It trades about 0.22 of its potential returns per unit of risk. Fujian Nanwang Environment is currently generating about 0.17 per unit of risk. If you would invest 248.00 in Shenzhen MYS Environmental on September 3, 2024 and sell it today you would earn a total of 127.00 from holding Shenzhen MYS Environmental or generate 51.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen MYS Environmental vs. Fujian Nanwang Environment
Performance |
Timeline |
Shenzhen MYS Environ |
Fujian Nanwang Envir |
Shenzhen MYS and Fujian Nanwang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen MYS and Fujian Nanwang
The main advantage of trading using opposite Shenzhen MYS and Fujian Nanwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, Fujian Nanwang 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 Fujian Nanwang will offset losses from the drop in Fujian Nanwang's long position.Shenzhen MYS vs. Guangdong Liantai Environmental | Shenzhen MYS vs. Harvest Fund Management | Shenzhen MYS vs. Sanbo Hospital Management | Shenzhen MYS vs. Tianjin Capital Environmental |
Fujian Nanwang vs. Zijin Mining Group | Fujian Nanwang vs. Baoshan Iron Steel | Fujian Nanwang vs. Rongsheng Petrochemical Co | Fujian Nanwang vs. Hoshine Silicon Ind |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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