Correlation Between Shenzhen and Caihong Display
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen AV Display Co and Caihong Display Devices, you can compare the effects of market volatilities on Shenzhen and Caihong Display 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 with a short position of Caihong Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen and Caihong Display.
Diversification Opportunities for Shenzhen and Caihong Display
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Caihong is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen AV Display Co and Caihong Display Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caihong Display Devices and 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 Shenzhen AV Display Co are associated (or correlated) with Caihong Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caihong Display Devices has no effect on the direction of Shenzhen i.e., Shenzhen and Caihong Display go up and down completely randomly.
Pair Corralation between Shenzhen and Caihong Display
Assuming the 90 days trading horizon Shenzhen AV Display Co is expected to generate 1.28 times more return on investment than Caihong Display. However, Shenzhen is 1.28 times more volatile than Caihong Display Devices. It trades about 0.04 of its potential returns per unit of risk. Caihong Display Devices is currently generating about 0.04 per unit of risk. If you would invest 3,589 in Shenzhen AV Display Co on September 12, 2025 and sell it today you would earn a total of 120.00 from holding Shenzhen AV Display Co or generate 3.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen AV Display Co vs. Caihong Display Devices
Performance |
| Timeline |
| Shenzhen AV Display |
| Caihong Display Devices |
Shenzhen and Caihong Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen and Caihong Display
The main advantage of trading using opposite Shenzhen and Caihong Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen position performs unexpectedly, Caihong Display 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 Caihong Display will offset losses from the drop in Caihong Display's long position.| Shenzhen vs. Shenzhen Jinxinnong Feed | Shenzhen vs. Kweichow Moutai Co | Shenzhen vs. G bits Network Technology | Shenzhen vs. Contemporary Amperex Technology |
| Caihong Display vs. Shenzhen Jinxinnong Feed | Caihong Display vs. Kweichow Moutai Co | Caihong Display vs. G bits Network Technology | Caihong Display vs. Contemporary Amperex Technology |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |