Correlation Between Shenzhen MYS and SAIC
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen MYS Environmental and SAIC Motor Corp, you can compare the effects of market volatilities on Shenzhen MYS and SAIC 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 MYS with a short position of SAIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and SAIC.
Diversification Opportunities for Shenzhen MYS and SAIC
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and SAIC is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and SAIC Motor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAIC Motor Corp and Shenzhen MYS 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 MYS Environmental are associated (or correlated) with SAIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAIC Motor Corp has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and SAIC go up and down completely randomly.
Pair Corralation between Shenzhen MYS and SAIC
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to under-perform the SAIC. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen MYS Environmental is 1.04 times less risky than SAIC. The stock trades about -0.11 of its potential returns per unit of risk. The SAIC Motor Corp is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 1,950 in SAIC Motor Corp on September 24, 2024 and sell it today you would lose (131.00) from holding SAIC Motor Corp or give up 6.72% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen MYS Environmental vs. SAIC Motor Corp
Performance |
Timeline |
Shenzhen MYS Environ |
SAIC Motor Corp |
Shenzhen MYS and SAIC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen MYS and SAIC
The main advantage of trading using opposite Shenzhen MYS and SAIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, SAIC 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 SAIC will offset losses from the drop in SAIC's long position.Shenzhen MYS vs. Zijin Mining Group | Shenzhen MYS vs. Wanhua Chemical Group | Shenzhen MYS vs. Baoshan Iron Steel | Shenzhen MYS vs. Shandong Gold Mining |
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.
Other Complementary Tools
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |