Correlation Between Shenzhen Coship and Chongqing Sulian
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By analyzing existing cross correlation between Shenzhen Coship Electronics and Chongqing Sulian Plastic, you can compare the effects of market volatilities on Shenzhen Coship and Chongqing Sulian 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 Coship with a short position of Chongqing Sulian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Coship and Chongqing Sulian.
Diversification Opportunities for Shenzhen Coship and Chongqing Sulian
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and Chongqing is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Coship Electronics and Chongqing Sulian Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Sulian Plastic and Shenzhen Coship 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 Coship Electronics are associated (or correlated) with Chongqing Sulian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Sulian Plastic has no effect on the direction of Shenzhen Coship i.e., Shenzhen Coship and Chongqing Sulian go up and down completely randomly.
Pair Corralation between Shenzhen Coship and Chongqing Sulian
Assuming the 90 days trading horizon Shenzhen Coship Electronics is expected to generate 1.2 times more return on investment than Chongqing Sulian. However, Shenzhen Coship is 1.2 times more volatile than Chongqing Sulian Plastic. It trades about 0.27 of its potential returns per unit of risk. Chongqing Sulian Plastic is currently generating about 0.04 per unit of risk. If you would invest 343.00 in Shenzhen Coship Electronics on October 23, 2024 and sell it today you would earn a total of 302.00 from holding Shenzhen Coship Electronics or generate 88.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Coship Electronics vs. Chongqing Sulian Plastic
Performance |
Timeline |
Shenzhen Coship Elec |
Chongqing Sulian Plastic |
Shenzhen Coship and Chongqing Sulian Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Coship and Chongqing Sulian
The main advantage of trading using opposite Shenzhen Coship and Chongqing Sulian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Coship position performs unexpectedly, Chongqing Sulian 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 Chongqing Sulian will offset losses from the drop in Chongqing Sulian's long position.Shenzhen Coship vs. Eastern Communications Co | Shenzhen Coship vs. Queclink Wireless Solutions | Shenzhen Coship vs. Dongfeng Automobile Co | Shenzhen Coship vs. Harbin Air Conditioning |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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