Correlation Between Shenzhen Fortune and Longmaster Information
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By analyzing existing cross correlation between Shenzhen Fortune Trend and Longmaster Information Tech, you can compare the effects of market volatilities on Shenzhen Fortune and Longmaster Information 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 Fortune with a short position of Longmaster Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Fortune and Longmaster Information.
Diversification Opportunities for Shenzhen Fortune and Longmaster Information
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Longmaster is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Fortune Trend and Longmaster Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longmaster Information and Shenzhen 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 Shenzhen Fortune Trend are associated (or correlated) with Longmaster Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longmaster Information has no effect on the direction of Shenzhen Fortune i.e., Shenzhen Fortune and Longmaster Information go up and down completely randomly.
Pair Corralation between Shenzhen Fortune and Longmaster Information
Assuming the 90 days trading horizon Shenzhen Fortune Trend is expected to generate 1.14 times more return on investment than Longmaster Information. However, Shenzhen Fortune is 1.14 times more volatile than Longmaster Information Tech. It trades about 0.07 of its potential returns per unit of risk. Longmaster Information Tech is currently generating about 0.04 per unit of risk. If you would invest 6,675 in Shenzhen Fortune Trend on September 26, 2024 and sell it today you would earn a total of 12,725 from holding Shenzhen Fortune Trend or generate 190.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 99.79% |
Values | Daily Returns |
Shenzhen Fortune Trend vs. Longmaster Information Tech
Performance |
Timeline |
Shenzhen Fortune Trend |
Longmaster Information |
Shenzhen Fortune and Longmaster Information Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Fortune and Longmaster Information
The main advantage of trading using opposite Shenzhen Fortune and Longmaster Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Fortune position performs unexpectedly, Longmaster Information 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 Longmaster Information will offset losses from the drop in Longmaster Information's long position.Shenzhen Fortune vs. Zhejiang Yayi Metal | Shenzhen Fortune vs. Ningbo Bohui Chemical | Shenzhen Fortune vs. Minmetals Capital Co | Shenzhen Fortune vs. Pengxin International Mining |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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