Correlation Between Leaguer Shenzhen and Gansu Yasheng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Leaguer Shenzhen MicroElectronics and Gansu Yasheng Industrial, you can compare the effects of market volatilities on Leaguer Shenzhen and Gansu Yasheng 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 Leaguer Shenzhen with a short position of Gansu Yasheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leaguer Shenzhen and Gansu Yasheng.
Diversification Opportunities for Leaguer Shenzhen and Gansu Yasheng
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Leaguer and Gansu is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Leaguer Shenzhen MicroElectron and Gansu Yasheng Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Yasheng Industrial and Leaguer Shenzhen 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 Leaguer Shenzhen MicroElectronics are associated (or correlated) with Gansu Yasheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Yasheng Industrial has no effect on the direction of Leaguer Shenzhen i.e., Leaguer Shenzhen and Gansu Yasheng go up and down completely randomly.
Pair Corralation between Leaguer Shenzhen and Gansu Yasheng
Assuming the 90 days trading horizon Leaguer Shenzhen MicroElectronics is expected to generate 1.72 times more return on investment than Gansu Yasheng. However, Leaguer Shenzhen is 1.72 times more volatile than Gansu Yasheng Industrial. It trades about 0.16 of its potential returns per unit of risk. Gansu Yasheng Industrial is currently generating about 0.11 per unit of risk. If you would invest 1,945 in Leaguer Shenzhen MicroElectronics on September 25, 2024 and sell it today you would earn a total of 933.00 from holding Leaguer Shenzhen MicroElectronics or generate 47.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Leaguer Shenzhen MicroElectron vs. Gansu Yasheng Industrial
Performance |
Timeline |
Leaguer Shenzhen Mic |
Gansu Yasheng Industrial |
Leaguer Shenzhen and Gansu Yasheng Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Leaguer Shenzhen and Gansu Yasheng
The main advantage of trading using opposite Leaguer Shenzhen and Gansu Yasheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leaguer Shenzhen position performs unexpectedly, Gansu Yasheng 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 Gansu Yasheng will offset losses from the drop in Gansu Yasheng's long position.Leaguer Shenzhen vs. Southchip Semiconductor Technology | Leaguer Shenzhen vs. Shanghai Yanpu Metal | Leaguer Shenzhen vs. GRINM Semiconductor Materials | Leaguer Shenzhen vs. Western Metal Materials |
Gansu Yasheng vs. Industrial and Commercial | Gansu Yasheng vs. China Construction Bank | Gansu Yasheng vs. Agricultural Bank of | Gansu Yasheng vs. Bank of China |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |