Correlation Between Shenzhen MYS and Niutech Environment
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By analyzing existing cross correlation between Shenzhen MYS Environmental and Niutech Environment Technology, you can compare the effects of market volatilities on Shenzhen MYS and Niutech Environment 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 Niutech Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Niutech Environment.
Diversification Opportunities for Shenzhen MYS and Niutech Environment
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Niutech is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and Niutech Environment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niutech Environment 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 Niutech Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Niutech Environment has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and Niutech Environment go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Niutech Environment
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 1.05 times more return on investment than Niutech Environment. However, Shenzhen MYS is 1.05 times more volatile than Niutech Environment Technology. It trades about 0.17 of its potential returns per unit of risk. Niutech Environment Technology is currently generating about 0.05 per unit of risk. If you would invest 193.00 in Shenzhen MYS Environmental on September 25, 2024 and sell it today you would earn a total of 163.00 from holding Shenzhen MYS Environmental or generate 84.46% 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. Niutech Environment Technology
Performance |
Timeline |
Shenzhen MYS Environ |
Niutech Environment |
Shenzhen MYS and Niutech Environment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen MYS and Niutech Environment
The main advantage of trading using opposite Shenzhen MYS and Niutech Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, Niutech Environment 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 Niutech Environment will offset losses from the drop in Niutech Environment'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 |
Niutech Environment vs. Shenzhen MYS Environmental | Niutech Environment vs. AVIC Fund Management | Niutech Environment vs. Shenzhen Bingchuan Network | Niutech Environment vs. Penghua Shenzhen Energy |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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