Correlation Between Tianjin Silvery and Shenzhen SDG
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tianjin Silvery Dragon and Shenzhen SDG Service, you can compare the effects of market volatilities on Tianjin Silvery 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 Tianjin Silvery with a short position of Shenzhen SDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Silvery and Shenzhen SDG.
Diversification Opportunities for Tianjin Silvery and Shenzhen SDG
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianjin and Shenzhen is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Silvery Dragon 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 Tianjin Silvery 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 Tianjin Silvery Dragon 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 Tianjin Silvery i.e., Tianjin Silvery and Shenzhen SDG go up and down completely randomly.
Pair Corralation between Tianjin Silvery and Shenzhen SDG
Assuming the 90 days trading horizon Tianjin Silvery is expected to generate 6.61 times less return on investment than Shenzhen SDG. But when comparing it to its historical volatility, Tianjin Silvery Dragon is 1.9 times less risky than Shenzhen SDG. It trades about 0.02 of its potential returns per unit of risk. Shenzhen SDG Service is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,501 in Shenzhen SDG Service on September 25, 2024 and sell it today you would earn a total of 2,651 from holding Shenzhen SDG Service or generate 106.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 99.58% |
Values | Daily Returns |
Tianjin Silvery Dragon vs. Shenzhen SDG Service
Performance |
Timeline |
Tianjin Silvery Dragon |
Shenzhen SDG Service |
Tianjin Silvery and Shenzhen SDG Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tianjin Silvery and Shenzhen SDG
The main advantage of trading using opposite Tianjin Silvery and Shenzhen SDG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Silvery 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.Tianjin Silvery vs. Fujian Longzhou Transportation | Tianjin Silvery vs. Zhongshan Broad Ocean Motor | Tianjin Silvery vs. Jinhui Liquor Co | Tianjin Silvery vs. Anhui Transport Consulting |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |