Correlation Between Poly Real and Shenzhen SDG
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By analyzing existing cross correlation between Poly Real Estate and Shenzhen SDG Service, you can compare the effects of market volatilities on Poly Real and Shenzhen SDG 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 Poly Real with a short position of Shenzhen SDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Poly Real and Shenzhen SDG.
Diversification Opportunities for Poly Real and Shenzhen SDG
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Poly and Shenzhen is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Poly Real Estate and Shenzhen SDG Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen SDG Service and Poly Real 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 Poly Real Estate are associated (or correlated) with Shenzhen SDG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen SDG Service has no effect on the direction of Poly Real i.e., Poly Real and Shenzhen SDG go up and down completely randomly.
Pair Corralation between Poly Real and Shenzhen SDG
Assuming the 90 days trading horizon Poly Real Estate is expected to generate 0.53 times more return on investment than Shenzhen SDG. However, Poly Real Estate is 1.89 times less risky than Shenzhen SDG. It trades about -0.15 of its potential returns per unit of risk. Shenzhen SDG Service is currently generating about -0.11 per unit of risk. If you would invest 974.00 in Poly Real Estate on September 25, 2024 and sell it today you would lose (52.00) from holding Poly Real Estate or give up 5.34% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Poly Real Estate vs. Shenzhen SDG Service
Performance |
Timeline |
Poly Real Estate |
Shenzhen SDG Service |
Poly Real and Shenzhen SDG Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Poly Real and Shenzhen SDG
The main advantage of trading using opposite Poly Real and Shenzhen SDG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Poly Real position performs unexpectedly, Shenzhen SDG 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 Shenzhen SDG will offset losses from the drop in Shenzhen SDG's long position.Poly Real vs. PetroChina Co Ltd | Poly Real vs. China Mobile Limited | Poly Real vs. CNOOC Limited | Poly Real vs. Ping An Insurance |
Shenzhen SDG vs. PetroChina Co Ltd | Shenzhen SDG vs. China Mobile Limited | Shenzhen SDG vs. CNOOC Limited | Shenzhen SDG vs. Ping An Insurance |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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