Correlation Between Shenzhen Centralcon and Sanan Optoelectronics
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Sanan Optoelectronics Co, you can compare the effects of market volatilities on Shenzhen Centralcon and Sanan Optoelectronics 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 Centralcon with a short position of Sanan Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Sanan Optoelectronics.
Diversification Opportunities for Shenzhen Centralcon and Sanan Optoelectronics
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Sanan is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Sanan Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanan Optoelectronics and Shenzhen Centralcon 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 Centralcon Investment are associated (or correlated) with Sanan Optoelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanan Optoelectronics has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Sanan Optoelectronics go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Sanan Optoelectronics
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to generate 2.23 times more return on investment than Sanan Optoelectronics. However, Shenzhen Centralcon is 2.23 times more volatile than Sanan Optoelectronics Co. It trades about 0.02 of its potential returns per unit of risk. Sanan Optoelectronics Co is currently generating about -0.09 per unit of risk. If you would invest 506.00 in Shenzhen Centralcon Investment on September 24, 2024 and sell it today you would earn a total of 2.00 from holding Shenzhen Centralcon Investment or generate 0.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Centralcon Investment vs. Sanan Optoelectronics Co
Performance |
Timeline |
Shenzhen Centralcon |
Sanan Optoelectronics |
Shenzhen Centralcon and Sanan Optoelectronics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Centralcon and Sanan Optoelectronics
The main advantage of trading using opposite Shenzhen Centralcon and Sanan Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Sanan Optoelectronics 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 Sanan Optoelectronics will offset losses from the drop in Sanan Optoelectronics' long position.Shenzhen Centralcon vs. Xinya Electronic Co | Shenzhen Centralcon vs. Shenzhen Clou Electronics | Shenzhen Centralcon vs. Sanbo Hospital Management | Shenzhen Centralcon vs. Integrated Electronic Systems |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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