Correlation Between Bohai Leasing and Shanghai Material
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By analyzing existing cross correlation between Bohai Leasing Co and Shanghai Material Trading, you can compare the effects of market volatilities on Bohai Leasing and Shanghai Material 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 Material. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bohai Leasing and Shanghai Material.
Diversification Opportunities for Bohai Leasing and Shanghai Material
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bohai and Shanghai is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Bohai Leasing Co and Shanghai Material Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Material Trading 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 Material. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Material Trading has no effect on the direction of Bohai Leasing i.e., Bohai Leasing and Shanghai Material go up and down completely randomly.
Pair Corralation between Bohai Leasing and Shanghai Material
Assuming the 90 days trading horizon Bohai Leasing Co is expected to generate 0.72 times more return on investment than Shanghai Material. However, Bohai Leasing Co is 1.38 times less risky than Shanghai Material. It trades about -0.17 of its potential returns per unit of risk. Shanghai Material Trading is currently generating about -0.16 per unit of risk. If you would invest 380.00 in Bohai Leasing Co on October 24, 2024 and sell it today you would lose (27.00) from holding Bohai Leasing Co or give up 7.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bohai Leasing Co vs. Shanghai Material Trading
Performance |
| Timeline |
| Bohai Leasing |
| Shanghai Material Trading |
Bohai Leasing and Shanghai Material Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bohai Leasing and Shanghai Material
The main advantage of trading using opposite Bohai Leasing and Shanghai Material positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bohai Leasing position performs unexpectedly, Shanghai Material 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 Material will offset losses from the drop in Shanghai Material's long position.| Bohai Leasing vs. Beijing Sanyuan Foods | Bohai Leasing vs. Fujian Anjoy Foods | Bohai Leasing vs. Eastroc Beverage Group | Bohai Leasing vs. Fuda Alloy Materials |
| Shanghai Material vs. Western Metal Materials | Shanghai Material vs. Bohai Leasing Co | Shanghai Material vs. Zhejiang Yongjin Metal | Shanghai Material vs. Tianshan Aluminum 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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