Correlation Between Shenzhen Sunway and Financial Street
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By analyzing existing cross correlation between Shenzhen Sunway Communication and Financial Street Holdings, you can compare the effects of market volatilities on Shenzhen Sunway and Financial Street 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 Sunway with a short position of Financial Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Sunway and Financial Street.
Diversification Opportunities for Shenzhen Sunway and Financial Street
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Financial is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Sunway Communication and Financial Street Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Financial Street Holdings and Shenzhen Sunway 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 Sunway Communication are associated (or correlated) with Financial Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Financial Street Holdings has no effect on the direction of Shenzhen Sunway i.e., Shenzhen Sunway and Financial Street go up and down completely randomly.
Pair Corralation between Shenzhen Sunway and Financial Street
Assuming the 90 days trading horizon Shenzhen Sunway Communication is expected to generate 1.26 times more return on investment than Financial Street. However, Shenzhen Sunway is 1.26 times more volatile than Financial Street Holdings. It trades about 0.04 of its potential returns per unit of risk. Financial Street Holdings is currently generating about -0.02 per unit of risk. If you would invest 1,653 in Shenzhen Sunway Communication on October 4, 2024 and sell it today you would earn a total of 891.00 from holding Shenzhen Sunway Communication or generate 53.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Sunway Communication vs. Financial Street Holdings
Performance |
Timeline |
Shenzhen Sunway Comm |
Financial Street Holdings |
Shenzhen Sunway and Financial Street Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Sunway and Financial Street
The main advantage of trading using opposite Shenzhen Sunway and Financial Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Sunway position performs unexpectedly, Financial Street 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 Financial Street will offset losses from the drop in Financial Street's long position.Shenzhen Sunway vs. Shanghai Ziyan Foods | Shenzhen Sunway vs. Ningbo Tech Bank Co | Shenzhen Sunway vs. Xinjiang Tianrun Dairy | Shenzhen Sunway vs. Qingdao Foods Co |
Financial Street vs. Cambricon Technologies Corp | Financial Street vs. SGSG Sciencetechnology Co | Financial Street vs. Loongson Technology Corp | Financial Street vs. Shenzhen Fortune Trend |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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