Correlation Between 159681 and Shenzhen Agricultural
Specify exactly 2 symbols:
By analyzing existing cross correlation between 159681 and Shenzhen Agricultural Products, you can compare the effects of market volatilities on 159681 and Shenzhen Agricultural 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 159681 with a short position of Shenzhen Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and Shenzhen Agricultural.
Diversification Opportunities for 159681 and Shenzhen Agricultural
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 159681 and Shenzhen is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding 159681 and Shenzhen Agricultural Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Agricultural and 159681 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 159681 are associated (or correlated) with Shenzhen Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Agricultural has no effect on the direction of 159681 i.e., 159681 and Shenzhen Agricultural go up and down completely randomly.
Pair Corralation between 159681 and Shenzhen Agricultural
Assuming the 90 days trading horizon 159681 is expected to generate 2.22 times more return on investment than Shenzhen Agricultural. However, 159681 is 2.22 times more volatile than Shenzhen Agricultural Products. It trades about 0.17 of its potential returns per unit of risk. Shenzhen Agricultural Products is currently generating about 0.3 per unit of risk. If you would invest 66.00 in 159681 on September 14, 2024 and sell it today you would earn a total of 35.00 from holding 159681 or generate 53.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
159681 vs. Shenzhen Agricultural Products
Performance |
Timeline |
159681 |
Shenzhen Agricultural |
159681 and Shenzhen Agricultural Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 159681 and Shenzhen Agricultural
The main advantage of trading using opposite 159681 and Shenzhen Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 position performs unexpectedly, Shenzhen Agricultural 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 Shenzhen Agricultural will offset losses from the drop in Shenzhen Agricultural's long position.The idea behind 159681 and Shenzhen Agricultural Products pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.Shenzhen Agricultural vs. Shanxi Lanhua Sci Tech | Shenzhen Agricultural vs. INKON Life Technology | Shenzhen Agricultural vs. Kuang Chi Technologies | Shenzhen Agricultural vs. Guangzhou Jinyi Media |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Money Managers Screen money managers from public funds and ETFs managed around the world |