Correlation Between Bohai Leasing and Shanghai Shibei
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By analyzing existing cross correlation between Bohai Leasing Co and Shanghai Shibei Hi Tech, you can compare the effects of market volatilities on Bohai Leasing and Shanghai Shibei 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 Bohai Leasing with a short position of Shanghai Shibei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bohai Leasing and Shanghai Shibei.
Diversification Opportunities for Bohai Leasing and Shanghai Shibei
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bohai and Shanghai is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Bohai Leasing Co and Shanghai Shibei Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shibei Hi and Bohai Leasing 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 Bohai Leasing Co are associated (or correlated) with Shanghai Shibei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shibei Hi has no effect on the direction of Bohai Leasing i.e., Bohai Leasing and Shanghai Shibei go up and down completely randomly.
Pair Corralation between Bohai Leasing and Shanghai Shibei
Assuming the 90 days trading horizon Bohai Leasing Co is expected to generate 0.98 times more return on investment than Shanghai Shibei. However, Bohai Leasing Co is 1.03 times less risky than Shanghai Shibei. It trades about 0.11 of its potential returns per unit of risk. Shanghai Shibei Hi Tech is currently generating about 0.08 per unit of risk. If you would invest 347.00 in Bohai Leasing Co on November 6, 2024 and sell it today you would earn a total of 9.00 from holding Bohai Leasing Co or generate 2.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bohai Leasing Co vs. Shanghai Shibei Hi Tech
Performance |
| Timeline |
| Bohai Leasing |
| Shanghai Shibei Hi |
Bohai Leasing and Shanghai Shibei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bohai Leasing and Shanghai Shibei
The main advantage of trading using opposite Bohai Leasing and Shanghai Shibei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bohai Leasing position performs unexpectedly, Shanghai Shibei 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 Shanghai Shibei will offset losses from the drop in Shanghai Shibei's long position.| Bohai Leasing vs. Gansu Huangtai Wine marketing | Bohai Leasing vs. Fangda Special Steel | Bohai Leasing vs. Bengang Steel Plates | Bohai Leasing vs. Citic Guoan Wine |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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