Correlation Between Shyft and CHINA SOUTHN
Can any of the company-specific risk be diversified away by investing in both Shyft and CHINA SOUTHN 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 Shyft and CHINA SOUTHN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Shyft Group and CHINA SOUTHN AIR H , you can compare the effects of market volatilities on Shyft and CHINA SOUTHN 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 Shyft with a short position of CHINA SOUTHN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shyft and CHINA SOUTHN.
Diversification Opportunities for Shyft and CHINA SOUTHN
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shyft and CHINA is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding The Shyft Group and CHINA SOUTHN AIR H in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA SOUTHN AIR and Shyft 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 The Shyft Group are associated (or correlated) with CHINA SOUTHN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA SOUTHN AIR has no effect on the direction of Shyft i.e., Shyft and CHINA SOUTHN go up and down completely randomly.
Pair Corralation between Shyft and CHINA SOUTHN
Assuming the 90 days horizon The Shyft Group is expected to under-perform the CHINA SOUTHN. In addition to that, Shyft is 1.78 times more volatile than CHINA SOUTHN AIR H . It trades about -0.11 of its total potential returns per unit of risk. CHINA SOUTHN AIR H is currently generating about -0.17 per unit of volatility. If you would invest 50.00 in CHINA SOUTHN AIR H on October 10, 2024 and sell it today you would lose (4.00) from holding CHINA SOUTHN AIR H or give up 8.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
The Shyft Group vs. CHINA SOUTHN AIR H
Performance |
Timeline |
Shyft Group |
CHINA SOUTHN AIR |
Shyft and CHINA SOUTHN Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shyft and CHINA SOUTHN
The main advantage of trading using opposite Shyft and CHINA SOUTHN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shyft position performs unexpectedly, CHINA SOUTHN 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 CHINA SOUTHN will offset losses from the drop in CHINA SOUTHN's long position.Shyft vs. CN MODERN DAIRY | Shyft vs. WisdomTree Investments | Shyft vs. New Residential Investment | Shyft vs. Performance Food Group |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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