Correlation Between Shenzhen Genvict and RedFlow

Can any of the company-specific risk be diversified away by investing in both Shenzhen Genvict and RedFlow at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Shenzhen Genvict and RedFlow into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Shenzhen Genvict Technologies and RedFlow, you can compare the effects of market volatilities on Shenzhen Genvict and RedFlow 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 Genvict with a short position of RedFlow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Genvict and RedFlow.

Diversification Opportunities for Shenzhen Genvict and RedFlow

0.0

Correlation Coefficient

Shenzhen Genvict  RedFlow

Pay attention - limited upside

The 3 months correlation between Shenzhen and RedFlow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Genvict Technologies and RedFlow in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RedFlow and Shenzhen Genvict 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 Genvict Technologies are associated (or correlated) with RedFlow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RedFlow has no effect on the direction of Shenzhen Genvict i.e., Shenzhen Genvict and RedFlow go up and down completely randomly.

Pair Corralation between Shenzhen Genvict and RedFlow

If you would invest  2,273  in Shenzhen Genvict Technologies on September 4, 2024 and sell it today you would earn a total of  779.00  from holding Shenzhen Genvict Technologies or generate 34.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	89.06%
Values	Daily Returns

Shenzhen Genvict Technologies  vs.  RedFlow

Shenzhen Genvict Tec

Risk-Adjusted Performance

11 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Shenzhen Genvict Technologies are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Shenzhen Genvict sustained solid returns over the last few months and may actually be approaching a breakup point.

RedFlow

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days RedFlow has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, RedFlow is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Shenzhen Genvict and RedFlow

The main advantage of trading using opposite Shenzhen Genvict and RedFlow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Genvict position performs unexpectedly, RedFlow 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 RedFlow will offset losses from the drop in RedFlow's long position.

The idea behind Shenzhen Genvict Technologies and RedFlow pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.