Correlation Between NVIDIA and Shenzhen United
Specify exactly 2 symbols:
By analyzing existing cross correlation between NVIDIA and Shenzhen United Winners, you can compare the effects of market volatilities on NVIDIA and Shenzhen United 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 NVIDIA with a short position of Shenzhen United. Check out your portfolio center. Please also check ongoing floating volatility patterns of NVIDIA and Shenzhen United.
Diversification Opportunities for NVIDIA and Shenzhen United
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NVIDIA and Shenzhen is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding NVIDIA and Shenzhen United Winners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen United Winners and NVIDIA 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 NVIDIA are associated (or correlated) with Shenzhen United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen United Winners has no effect on the direction of NVIDIA i.e., NVIDIA and Shenzhen United go up and down completely randomly.
Pair Corralation between NVIDIA and Shenzhen United
Given the investment horizon of 90 days NVIDIA is expected to generate 0.52 times more return on investment than Shenzhen United. However, NVIDIA is 1.94 times less risky than Shenzhen United. It trades about 0.1 of its potential returns per unit of risk. Shenzhen United Winners is currently generating about -0.02 per unit of risk. If you would invest 12,771 in NVIDIA on October 5, 2024 and sell it today you would earn a total of 1,676 from holding NVIDIA or generate 13.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.41% |
Values | Daily Returns |
NVIDIA vs. Shenzhen United Winners
Performance |
Timeline |
NVIDIA |
Shenzhen United Winners |
NVIDIA and Shenzhen United Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with NVIDIA and Shenzhen United
The main advantage of trading using opposite NVIDIA and Shenzhen United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NVIDIA position performs unexpectedly, Shenzhen United 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 United will offset losses from the drop in Shenzhen United's long position.NVIDIA vs. Intel | NVIDIA vs. Taiwan Semiconductor Manufacturing | NVIDIA vs. Marvell Technology Group | NVIDIA vs. Micron Technology |
Shenzhen United vs. Xinjiang Communications Construction | Shenzhen United vs. Postal Savings Bank | Shenzhen United vs. Guangdong Shenglu Telecommunication | Shenzhen United vs. Jiangsu Yueda Investment |
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
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Transaction History View history of all your transactions and understand their impact on performance |