Correlation Between China Fortune and Shenzhen SDG
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Fortune Land and Shenzhen SDG Service, you can compare the effects of market volatilities on China Fortune 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 China Fortune with a short position of Shenzhen SDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Fortune and Shenzhen SDG.
Diversification Opportunities for China Fortune and Shenzhen SDG
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Shenzhen is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding China Fortune Land 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 China Fortune 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 China Fortune Land 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 China Fortune i.e., China Fortune and Shenzhen SDG go up and down completely randomly.
Pair Corralation between China Fortune and Shenzhen SDG
Assuming the 90 days trading horizon China Fortune Land is expected to generate 0.91 times more return on investment than Shenzhen SDG. However, China Fortune Land is 1.1 times less risky than Shenzhen SDG. It trades about 0.26 of its potential returns per unit of risk. Shenzhen SDG Service is currently generating about 0.12 per unit of risk. If you would invest 113.00 in China Fortune Land on September 25, 2024 and sell it today you would earn a total of 178.00 from holding China Fortune Land or generate 157.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.33% |
Values | Daily Returns |
China Fortune Land vs. Shenzhen SDG Service
Performance |
Timeline |
China Fortune Land |
Shenzhen SDG Service |
China Fortune and Shenzhen SDG Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Fortune and Shenzhen SDG
The main advantage of trading using opposite China Fortune and Shenzhen SDG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Fortune 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.China Fortune vs. PetroChina Co Ltd | China Fortune vs. China Mobile Limited | China Fortune vs. CNOOC Limited | China Fortune 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |