Correlation Between Shenzhen Investment and Nucletron Electronic

Can any of the company-specific risk be diversified away by investing in both Shenzhen Investment and Nucletron Electronic at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Shenzhen Investment and Nucletron Electronic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Shenzhen Investment Limited and Nucletron Electronic Aktiengesellschaft, you can compare the effects of market volatilities on Shenzhen Investment and Nucletron Electronic 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 Investment with a short position of Nucletron Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Investment and Nucletron Electronic.

Diversification Opportunities for Shenzhen Investment and Nucletron Electronic

0.0

Correlation Coefficient

Shenzhen Investment  Nucletron Electronic

Pay attention - limited upside

The 3 months correlation between Shenzhen and Nucletron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Investment Limited and Nucletron Electronic Aktienges in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nucletron Electronic and Shenzhen Investment 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 Investment Limited are associated (or correlated) with Nucletron Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nucletron Electronic has no effect on the direction of Shenzhen Investment i.e., Shenzhen Investment and Nucletron Electronic go up and down completely randomly.

Pair Corralation between Shenzhen Investment and Nucletron Electronic

If you would invest  10.00  in Shenzhen Investment Limited on December 21, 2024 and sell it today you would lose (0.55) from holding Shenzhen Investment Limited or give up 5.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Shenzhen Investment Limited  vs.  Nucletron Electronic Aktienges

Shenzhen Investment

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Shenzhen Investment Limited are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Shenzhen Investment may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Nucletron Electronic

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nucletron Electronic Aktiengesellschaft has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Nucletron Electronic is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Shenzhen Investment and Nucletron Electronic

The main advantage of trading using opposite Shenzhen Investment and Nucletron Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Investment position performs unexpectedly, Nucletron Electronic 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 Nucletron Electronic will offset losses from the drop in Nucletron Electronic's long position.

The idea behind Shenzhen Investment Limited and Nucletron Electronic Aktiengesellschaft pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..