Correlation Between ChengDu Hi and Shanghai Baosight
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By analyzing existing cross correlation between ChengDu Hi Tech Development and Shanghai Baosight Software, you can compare the effects of market volatilities on ChengDu Hi and Shanghai Baosight 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 Baosight. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChengDu Hi and Shanghai Baosight.
Diversification Opportunities for ChengDu Hi and Shanghai Baosight
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ChengDu and Shanghai is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding ChengDu Hi Tech Development and Shanghai Baosight Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Baosight 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 Baosight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Baosight has no effect on the direction of ChengDu Hi i.e., ChengDu Hi and Shanghai Baosight go up and down completely randomly.
Pair Corralation between ChengDu Hi and Shanghai Baosight
Assuming the 90 days trading horizon ChengDu Hi Tech Development is expected to generate 2.27 times more return on investment than Shanghai Baosight. However, ChengDu Hi is 2.27 times more volatile than Shanghai Baosight Software. It trades about 0.1 of its potential returns per unit of risk. Shanghai Baosight Software is currently generating about -0.04 per unit of risk. If you would invest 1,257 in ChengDu Hi Tech Development on August 27, 2024 and sell it today you would earn a total of 4,585 from holding ChengDu Hi Tech Development or generate 364.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ChengDu Hi Tech Development vs. Shanghai Baosight Software
Performance |
| Timeline |
| ChengDu Hi Tech |
| Shanghai Baosight |
ChengDu Hi and Shanghai Baosight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ChengDu Hi and Shanghai Baosight
The main advantage of trading using opposite ChengDu Hi and Shanghai Baosight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChengDu Hi position performs unexpectedly, Shanghai Baosight 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 Baosight will offset losses from the drop in Shanghai Baosight's long position.| ChengDu Hi vs. Industrial and Commercial | ChengDu Hi vs. China Construction Bank | ChengDu Hi vs. Bank of China | ChengDu Hi vs. Agricultural Bank of |
| Shanghai Baosight vs. HaiXin Foods Co | Shanghai Baosight vs. Oriental Times Media | Shanghai Baosight vs. Zhengzhou Qianweiyangchu Food | Shanghai Baosight vs. Xiamen Jihong Package |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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