Correlation Between Shantui Construction and ButOne Information
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By analyzing existing cross correlation between Shantui Construction Machinery and ButOne Information Corp, you can compare the effects of market volatilities on Shantui Construction and ButOne Information 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 Shantui Construction with a short position of ButOne Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantui Construction and ButOne Information.
Diversification Opportunities for Shantui Construction and ButOne Information
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shantui and ButOne is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shantui Construction Machinery and ButOne Information Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ButOne Information Corp and Shantui Construction 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 Shantui Construction Machinery are associated (or correlated) with ButOne Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ButOne Information Corp has no effect on the direction of Shantui Construction i.e., Shantui Construction and ButOne Information go up and down completely randomly.
Pair Corralation between Shantui Construction and ButOne Information
Assuming the 90 days trading horizon Shantui Construction Machinery is expected to generate 0.96 times more return on investment than ButOne Information. However, Shantui Construction Machinery is 1.04 times less risky than ButOne Information. It trades about 0.08 of its potential returns per unit of risk. ButOne Information Corp is currently generating about 0.02 per unit of risk. If you would invest 398.00 in Shantui Construction Machinery on September 13, 2024 and sell it today you would earn a total of 576.00 from holding Shantui Construction Machinery or generate 144.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shantui Construction Machinery vs. ButOne Information Corp
Performance |
| Timeline |
| Shantui Construction |
| ButOne Information Corp |
Shantui Construction and ButOne Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shantui Construction and ButOne Information
The main advantage of trading using opposite Shantui Construction and ButOne Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantui Construction position performs unexpectedly, ButOne Information 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 ButOne Information will offset losses from the drop in ButOne Information's long position.| Shantui Construction vs. Cultural Investment Holdings | Shantui Construction vs. Gome Telecom Equipment | Shantui Construction vs. Holitech Technology Co | Shantui Construction vs. Zotye Automobile 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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