Correlation Between Shenzhen SDG and China Minsheng
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By analyzing existing cross correlation between Shenzhen SDG Information and China Minsheng Banking, you can compare the effects of market volatilities on Shenzhen SDG and China Minsheng 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 SDG with a short position of China Minsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and China Minsheng.
Diversification Opportunities for Shenzhen SDG and China Minsheng
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and China is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Information and China Minsheng Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Minsheng Banking and Shenzhen SDG 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 SDG Information are associated (or correlated) with China Minsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Minsheng Banking has no effect on the direction of Shenzhen SDG i.e., Shenzhen SDG and China Minsheng go up and down completely randomly.
Pair Corralation between Shenzhen SDG and China Minsheng
Assuming the 90 days trading horizon Shenzhen SDG is expected to generate 45.88 times less return on investment than China Minsheng. In addition to that, Shenzhen SDG is 1.05 times more volatile than China Minsheng Banking. It trades about 0.0 of its total potential returns per unit of risk. China Minsheng Banking is currently generating about 0.17 per unit of volatility. If you would invest 377.00 in China Minsheng Banking on September 15, 2024 and sell it today you would earn a total of 29.00 from holding China Minsheng Banking or generate 7.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen SDG Information vs. China Minsheng Banking
Performance |
Timeline |
Shenzhen SDG Information |
China Minsheng Banking |
Shenzhen SDG and China Minsheng Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen SDG and China Minsheng
The main advantage of trading using opposite Shenzhen SDG and China Minsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG position performs unexpectedly, China Minsheng 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 China Minsheng will offset losses from the drop in China Minsheng's long position.Shenzhen SDG vs. Industrial and Commercial | Shenzhen SDG vs. China Construction Bank | Shenzhen SDG vs. Bank of China | Shenzhen SDG vs. Agricultural Bank of |
China Minsheng vs. Sichuan Fulin Transportation | China Minsheng vs. Yonyou Auto Information | China Minsheng vs. Sportsoul Co Ltd | China Minsheng vs. Shenzhen SDG Information |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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