Correlation Between ChengDu Hi and Shanghai Action
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By analyzing existing cross correlation between ChengDu Hi Tech Development and Shanghai Action Education, you can compare the effects of market volatilities on ChengDu Hi and Shanghai Action 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 ChengDu Hi with a short position of Shanghai Action. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChengDu Hi and Shanghai Action.
Diversification Opportunities for ChengDu Hi and Shanghai Action
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between ChengDu and Shanghai is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding ChengDu Hi Tech Development and Shanghai Action Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Action Education and ChengDu Hi 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 ChengDu Hi Tech Development are associated (or correlated) with Shanghai Action. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Action Education has no effect on the direction of ChengDu Hi i.e., ChengDu Hi and Shanghai Action go up and down completely randomly.
Pair Corralation between ChengDu Hi and Shanghai Action
Assuming the 90 days trading horizon ChengDu Hi is expected to generate 4.13 times less return on investment than Shanghai Action. In addition to that, ChengDu Hi is 1.06 times more volatile than Shanghai Action Education. It trades about 0.05 of its total potential returns per unit of risk. Shanghai Action Education is currently generating about 0.22 per unit of volatility. If you would invest 3,694 in Shanghai Action Education on November 29, 2024 and sell it today you would earn a total of 326.00 from holding Shanghai Action Education or generate 8.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ChengDu Hi Tech Development vs. Shanghai Action Education
Performance |
| Timeline |
| ChengDu Hi Tech |
| Shanghai Action Education |
ChengDu Hi and Shanghai Action Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ChengDu Hi and Shanghai Action
The main advantage of trading using opposite ChengDu Hi and Shanghai Action positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChengDu Hi position performs unexpectedly, Shanghai Action 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 Action will offset losses from the drop in Shanghai Action's long position.| ChengDu Hi vs. Guangdong Ellington Electronics | ChengDu Hi vs. Harvest Fund Management | ChengDu Hi vs. LianChuang Electronic Technology | ChengDu Hi vs. Sunwoda Electronic |
| Shanghai Action vs. HaiXin Foods Co | Shanghai Action vs. Zhongyin Babi Food | Shanghai Action vs. New Hope Dairy | Shanghai Action vs. Jinhe Biotechnology Co |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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