Correlation Between Shenzhen Investment and Inter Co
Can any of the company-specific risk be diversified away by investing in both Shenzhen Investment and Inter Co 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 Inter Co into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shenzhen Investment Holdings and Inter Co Class, you can compare the effects of market volatilities on Shenzhen Investment and Inter Co 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 Inter Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Investment and Inter Co.
Diversification Opportunities for Shenzhen Investment and Inter Co
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenzhen and Inter is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Investment Holdings and Inter Co Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inter Co Class 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 Holdings are associated (or correlated) with Inter Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inter Co Class has no effect on the direction of Shenzhen Investment i.e., Shenzhen Investment and Inter Co go up and down completely randomly.
Pair Corralation between Shenzhen Investment and Inter Co
Assuming the 90 days horizon Shenzhen Investment Holdings is expected to generate 0.33 times more return on investment than Inter Co. However, Shenzhen Investment Holdings is 3.04 times less risky than Inter Co. It trades about 0.18 of its potential returns per unit of risk. Inter Co Class is currently generating about 0.06 per unit of risk. If you would invest 21.00 in Shenzhen Investment Holdings on September 3, 2025 and sell it today you would earn a total of 2.00 from holding Shenzhen Investment Holdings or generate 9.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Shenzhen Investment Holdings vs. Inter Co Class
Performance |
| Timeline |
| Shenzhen Investment |
| Inter Co Class |
Shenzhen Investment and Inter Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Investment and Inter Co
The main advantage of trading using opposite Shenzhen Investment and Inter Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Investment position performs unexpectedly, Inter Co 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 Inter Co will offset losses from the drop in Inter Co's long position.| Shenzhen Investment vs. SoftwareONE Holding AG | Shenzhen Investment vs. Astral Foods Limited | Shenzhen Investment vs. Asure Software | Shenzhen Investment vs. NH Foods Ltd |
| Inter Co vs. Sphere Entertainment Co | Inter Co vs. Glorywin Entertainment Group | Inter Co vs. Motorcar Parts of | Inter Co vs. SkyCity Entertainment Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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