Correlation Between Shenzhen MYS and Zhende Medical
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By analyzing existing cross correlation between Shenzhen MYS Environmental and Zhende Medical Co, you can compare the effects of market volatilities on Shenzhen MYS and Zhende Medical 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 MYS with a short position of Zhende Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Zhende Medical.
Diversification Opportunities for Shenzhen MYS and Zhende Medical
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Zhende is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and Zhende Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhende Medical and Shenzhen MYS 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 MYS Environmental are associated (or correlated) with Zhende Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhende Medical has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and Zhende Medical go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Zhende Medical
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 1.22 times more return on investment than Zhende Medical. However, Shenzhen MYS is 1.22 times more volatile than Zhende Medical Co. It trades about 0.04 of its potential returns per unit of risk. Zhende Medical Co is currently generating about -0.05 per unit of risk. If you would invest 282.00 in Shenzhen MYS Environmental on September 24, 2024 and sell it today you would earn a total of 95.00 from holding Shenzhen MYS Environmental or generate 33.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen MYS Environmental vs. Zhende Medical Co
Performance |
Timeline |
Shenzhen MYS Environ |
Zhende Medical |
Shenzhen MYS and Zhende Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen MYS and Zhende Medical
The main advantage of trading using opposite Shenzhen MYS and Zhende Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, Zhende Medical 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 Zhende Medical will offset losses from the drop in Zhende Medical's long position.Shenzhen MYS vs. Zijin Mining Group | Shenzhen MYS vs. Wanhua Chemical Group | Shenzhen MYS vs. Baoshan Iron Steel | Shenzhen MYS vs. Shandong Gold Mining |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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