Correlation Between Shantui Construction and Cathay Biotech
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shantui Construction Machinery and Cathay Biotech, you can compare the effects of market volatilities on Shantui Construction and Cathay Biotech 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 Cathay Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantui Construction and Cathay Biotech.
Diversification Opportunities for Shantui Construction and Cathay Biotech
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shantui and Cathay is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Shantui Construction Machinery and Cathay Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cathay Biotech 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 Cathay Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cathay Biotech has no effect on the direction of Shantui Construction i.e., Shantui Construction and Cathay Biotech go up and down completely randomly.
Pair Corralation between Shantui Construction and Cathay Biotech
Assuming the 90 days trading horizon Shantui Construction Machinery is expected to generate 1.61 times more return on investment than Cathay Biotech. However, Shantui Construction is 1.61 times more volatile than Cathay Biotech. It trades about 0.11 of its potential returns per unit of risk. Cathay Biotech is currently generating about 0.0 per unit of risk. If you would invest 973.00 in Shantui Construction Machinery on October 24, 2024 and sell it today you would earn a total of 52.00 from holding Shantui Construction Machinery or generate 5.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Shantui Construction Machinery vs. Cathay Biotech
Performance |
| Timeline |
| Shantui Construction |
| Cathay Biotech |
Shantui Construction and Cathay Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shantui Construction and Cathay Biotech
The main advantage of trading using opposite Shantui Construction and Cathay Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantui Construction position performs unexpectedly, Cathay Biotech 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 Cathay Biotech will offset losses from the drop in Cathay Biotech's long position.| Shantui Construction vs. Zhongshan Broad Ocean Motor | Shantui Construction vs. Hunan TV Broadcast | Shantui Construction vs. Highbroad Advanced Material | Shantui Construction vs. Xinjiang Beixin RoadBridge |
| Cathay Biotech vs. Glodon Software Co | Cathay Biotech vs. GuoChuang Software Co | Cathay Biotech vs. Fujian Boss Software | Cathay Biotech vs. Suzhou Mingzhi Technology |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |