Correlation Between Shenzhen MYS and Flat Glass
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By analyzing existing cross correlation between Shenzhen MYS Environmental and Flat Glass Group, you can compare the effects of market volatilities on Shenzhen MYS and Flat Glass 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 Flat Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Flat Glass.
Diversification Opportunities for Shenzhen MYS and Flat Glass
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Flat is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and Flat Glass Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flat Glass Group 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 Flat Glass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flat Glass Group has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and Flat Glass go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Flat Glass
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 0.82 times more return on investment than Flat Glass. However, Shenzhen MYS Environmental is 1.23 times less risky than Flat Glass. It trades about 0.18 of its potential returns per unit of risk. Flat Glass Group is currently generating about 0.02 per unit of risk. If you would invest 198.00 in Shenzhen MYS Environmental on September 24, 2024 and sell it today you would earn a total of 179.00 from holding Shenzhen MYS Environmental or generate 90.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen MYS Environmental vs. Flat Glass Group
Performance |
Timeline |
Shenzhen MYS Environ |
Flat Glass Group |
Shenzhen MYS and Flat Glass Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen MYS and Flat Glass
The main advantage of trading using opposite Shenzhen MYS and Flat Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, Flat Glass 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 Flat Glass will offset losses from the drop in Flat Glass' 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 |
Flat Glass vs. Zhejiang Construction Investment | Flat Glass vs. Kunwu Jiuding Investment | Flat Glass vs. Metro Investment Development | Flat Glass vs. Xiandai Investment 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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