Correlation Between Shenzhen Overseas and Beijing Roborock
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By analyzing existing cross correlation between Shenzhen Overseas Chinese and Beijing Roborock Technology, you can compare the effects of market volatilities on Shenzhen Overseas and Beijing Roborock 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 Overseas with a short position of Beijing Roborock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Overseas and Beijing Roborock.
Diversification Opportunities for Shenzhen Overseas and Beijing Roborock
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and Beijing is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Overseas Chinese and Beijing Roborock Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Roborock Tec and Shenzhen Overseas 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 Overseas Chinese are associated (or correlated) with Beijing Roborock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Roborock Tec has no effect on the direction of Shenzhen Overseas i.e., Shenzhen Overseas and Beijing Roborock go up and down completely randomly.
Pair Corralation between Shenzhen Overseas and Beijing Roborock
Assuming the 90 days trading horizon Shenzhen Overseas Chinese is expected to generate 0.88 times more return on investment than Beijing Roborock. However, Shenzhen Overseas Chinese is 1.13 times less risky than Beijing Roborock. It trades about 0.12 of its potential returns per unit of risk. Beijing Roborock Technology is currently generating about 0.02 per unit of risk. If you would invest 219.00 in Shenzhen Overseas Chinese on September 25, 2024 and sell it today you would earn a total of 62.00 from holding Shenzhen Overseas Chinese or generate 28.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Overseas Chinese vs. Beijing Roborock Technology
Performance |
Timeline |
Shenzhen Overseas Chinese |
Beijing Roborock Tec |
Shenzhen Overseas and Beijing Roborock Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Overseas and Beijing Roborock
The main advantage of trading using opposite Shenzhen Overseas and Beijing Roborock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Overseas position performs unexpectedly, Beijing Roborock 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 Beijing Roborock will offset losses from the drop in Beijing Roborock's long position.Shenzhen Overseas vs. Bank of China | Shenzhen Overseas vs. Kweichow Moutai Co | Shenzhen Overseas vs. PetroChina Co Ltd | Shenzhen Overseas vs. Bank of Communications |
Beijing Roborock vs. Guangdong Shenglu Telecommunication | Beijing Roborock vs. Tongyu Communication | Beijing Roborock vs. Runjian Communication Co | Beijing Roborock vs. SUNSEA Telecommunications Co |
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 Positions Ratings module to 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.
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