Correlation Between Shenzhen Glory and Railway Signal
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By analyzing existing cross correlation between Shenzhen Glory Medical and Railway Signal Communication, you can compare the effects of market volatilities on Shenzhen Glory and Railway Signal 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 Glory with a short position of Railway Signal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Glory and Railway Signal.
Diversification Opportunities for Shenzhen Glory and Railway Signal
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Railway is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Glory Medical and Railway Signal Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Railway Signal Commu and Shenzhen Glory 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 Glory Medical are associated (or correlated) with Railway Signal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Railway Signal Commu has no effect on the direction of Shenzhen Glory i.e., Shenzhen Glory and Railway Signal go up and down completely randomly.
Pair Corralation between Shenzhen Glory and Railway Signal
Assuming the 90 days trading horizon Shenzhen Glory Medical is expected to generate 4.11 times more return on investment than Railway Signal. However, Shenzhen Glory is 4.11 times more volatile than Railway Signal Communication. It trades about -0.02 of its potential returns per unit of risk. Railway Signal Communication is currently generating about -0.08 per unit of risk. If you would invest 332.00 in Shenzhen Glory Medical on September 25, 2024 and sell it today you would lose (9.00) from holding Shenzhen Glory Medical or give up 2.71% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Glory Medical vs. Railway Signal Communication
Performance |
Timeline |
Shenzhen Glory Medical |
Railway Signal Commu |
Shenzhen Glory and Railway Signal Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Glory and Railway Signal
The main advantage of trading using opposite Shenzhen Glory and Railway Signal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Glory position performs unexpectedly, Railway Signal 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 Railway Signal will offset losses from the drop in Railway Signal's long position.Shenzhen Glory vs. Kweichow Moutai Co | Shenzhen Glory vs. Contemporary Amperex Technology | Shenzhen Glory vs. G bits Network Technology | Shenzhen Glory vs. BYD Co Ltd |
Railway Signal vs. Kweichow Moutai Co | Railway Signal vs. Shenzhen Mindray Bio Medical | Railway Signal vs. Jiangsu Pacific Quartz | Railway Signal vs. G bits Network Technology |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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