Correlation Between Shenzhen Changfang and Lander Sports
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By analyzing existing cross correlation between Shenzhen Changfang Light and Lander Sports Development, you can compare the effects of market volatilities on Shenzhen Changfang and Lander Sports 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 Changfang with a short position of Lander Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Changfang and Lander Sports.
Diversification Opportunities for Shenzhen Changfang and Lander Sports
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Lander is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Changfang Light and Lander Sports Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lander Sports Development and Shenzhen Changfang 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 Changfang Light are associated (or correlated) with Lander Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lander Sports Development has no effect on the direction of Shenzhen Changfang i.e., Shenzhen Changfang and Lander Sports go up and down completely randomly.
Pair Corralation between Shenzhen Changfang and Lander Sports
Assuming the 90 days trading horizon Shenzhen Changfang Light is expected to generate 1.07 times more return on investment than Lander Sports. However, Shenzhen Changfang is 1.07 times more volatile than Lander Sports Development. It trades about 0.21 of its potential returns per unit of risk. Lander Sports Development is currently generating about 0.23 per unit of risk. If you would invest 122.00 in Shenzhen Changfang Light on September 12, 2024 and sell it today you would earn a total of 72.00 from holding Shenzhen Changfang Light or generate 59.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Changfang Light vs. Lander Sports Development
Performance |
Timeline |
Shenzhen Changfang Light |
Lander Sports Development |
Shenzhen Changfang and Lander Sports Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Changfang and Lander Sports
The main advantage of trading using opposite Shenzhen Changfang and Lander Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Changfang position performs unexpectedly, Lander Sports 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 Lander Sports will offset losses from the drop in Lander Sports' long position.Shenzhen Changfang vs. Agricultural Bank of | Shenzhen Changfang vs. Industrial and Commercial | Shenzhen Changfang vs. Bank of China | Shenzhen Changfang vs. PetroChina Co Ltd |
Lander Sports vs. Industrial and Commercial | Lander Sports vs. China Construction Bank | Lander Sports vs. Bank of China | Lander Sports vs. Agricultural Bank of |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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