Correlation Between Xiandai Investment and Shanghai Yaoji
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By analyzing existing cross correlation between Xiandai Investment Co and Shanghai Yaoji Playing, you can compare the effects of market volatilities on Xiandai Investment and Shanghai Yaoji 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 Xiandai Investment with a short position of Shanghai Yaoji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and Shanghai Yaoji.
Diversification Opportunities for Xiandai Investment and Shanghai Yaoji
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiandai and Shanghai is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment Co and Shanghai Yaoji Playing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yaoji Playing and Xiandai Investment 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 Xiandai Investment Co are associated (or correlated) with Shanghai Yaoji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yaoji Playing has no effect on the direction of Xiandai Investment i.e., Xiandai Investment and Shanghai Yaoji go up and down completely randomly.
Pair Corralation between Xiandai Investment and Shanghai Yaoji
Assuming the 90 days trading horizon Xiandai Investment is expected to generate 11.25 times less return on investment than Shanghai Yaoji. But when comparing it to its historical volatility, Xiandai Investment Co is 2.4 times less risky than Shanghai Yaoji. It trades about 0.01 of its potential returns per unit of risk. Shanghai Yaoji Playing is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,423 in Shanghai Yaoji Playing on October 13, 2024 and sell it today you would earn a total of 1,037 from holding Shanghai Yaoji Playing or generate 72.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiandai Investment Co vs. Shanghai Yaoji Playing
Performance |
| Timeline |
| Xiandai Investment |
| Shanghai Yaoji Playing |
Xiandai Investment and Shanghai Yaoji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiandai Investment and Shanghai Yaoji
The main advantage of trading using opposite Xiandai Investment and Shanghai Yaoji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai Investment position performs unexpectedly, Shanghai Yaoji 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 Yaoji will offset losses from the drop in Shanghai Yaoji's long position.| Xiandai Investment vs. Shandong Hongchuang Aluminum | Xiandai Investment vs. Shanghai Yanpu Metal | Xiandai Investment vs. Zhejiang Yongjin Metal | Xiandai Investment vs. Inspur Software Co |
| Shanghai Yaoji vs. Anhui Jianghuai Automobile | Shanghai Yaoji vs. Hainan Airlines Co | Shanghai Yaoji vs. Xiandai Investment Co | Shanghai Yaoji vs. Xiangyang Automobile Bearing |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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