Correlation Between Shenzhen Noposion and Shanghai Rongtai
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Shanghai Rongtai Health, you can compare the effects of market volatilities on Shenzhen Noposion and Shanghai Rongtai 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 Noposion with a short position of Shanghai Rongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Shanghai Rongtai.
Diversification Opportunities for Shenzhen Noposion and Shanghai Rongtai
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Shanghai is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical and Shanghai Rongtai Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rongtai Health and Shenzhen Noposion 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 Noposion Agrochemicals are associated (or correlated) with Shanghai Rongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rongtai Health has no effect on the direction of Shenzhen Noposion i.e., Shenzhen Noposion and Shanghai Rongtai go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Shanghai Rongtai
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to generate 1.1 times more return on investment than Shanghai Rongtai. However, Shenzhen Noposion is 1.1 times more volatile than Shanghai Rongtai Health. It trades about 0.15 of its potential returns per unit of risk. Shanghai Rongtai Health is currently generating about 0.0 per unit of risk. If you would invest 767.00 in Shenzhen Noposion Agrochemicals on September 24, 2024 and sell it today you would earn a total of 404.00 from holding Shenzhen Noposion Agrochemicals or generate 52.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. Shanghai Rongtai Health
Performance |
Timeline |
Shenzhen Noposion |
Shanghai Rongtai Health |
Shenzhen Noposion and Shanghai Rongtai Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Noposion and Shanghai Rongtai
The main advantage of trading using opposite Shenzhen Noposion and Shanghai Rongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion position performs unexpectedly, Shanghai Rongtai 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 Shanghai Rongtai will offset losses from the drop in Shanghai Rongtai's long position.Shenzhen Noposion vs. Zijin Mining Group | Shenzhen Noposion vs. Wanhua Chemical Group | Shenzhen Noposion vs. Baoshan Iron Steel | Shenzhen Noposion vs. Shandong Gold Mining |
Shanghai Rongtai vs. Shenzhen Noposion Agrochemicals | Shanghai Rongtai vs. Wintao Communications Co | Shanghai Rongtai vs. Guangdong Shenglu Telecommunication | Shanghai Rongtai vs. Xilong Chemical 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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