Correlation Between Xiandai Investment and Shanghai Shuixing
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By analyzing existing cross correlation between Xiandai Investment Co and Shanghai Shuixing Home, you can compare the effects of market volatilities on Xiandai Investment and Shanghai Shuixing 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 Shuixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and Shanghai Shuixing.
Diversification Opportunities for Xiandai Investment and Shanghai Shuixing
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiandai and Shanghai is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment Co and Shanghai Shuixing Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shuixing Home 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 Shuixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shuixing Home has no effect on the direction of Xiandai Investment i.e., Xiandai Investment and Shanghai Shuixing go up and down completely randomly.
Pair Corralation between Xiandai Investment and Shanghai Shuixing
Assuming the 90 days trading horizon Xiandai Investment Co is expected to generate 0.43 times more return on investment than Shanghai Shuixing. However, Xiandai Investment Co is 2.31 times less risky than Shanghai Shuixing. It trades about 0.03 of its potential returns per unit of risk. Shanghai Shuixing Home is currently generating about -0.35 per unit of risk. If you would invest 420.00 in Xiandai Investment Co on November 5, 2024 and sell it today you would earn a total of 2.00 from holding Xiandai Investment Co or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiandai Investment Co vs. Shanghai Shuixing Home
Performance |
| Timeline |
| Xiandai Investment |
| Shanghai Shuixing Home |
Xiandai Investment and Shanghai Shuixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiandai Investment and Shanghai Shuixing
The main advantage of trading using opposite Xiandai Investment and Shanghai Shuixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai Investment position performs unexpectedly, Shanghai Shuixing 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 Shuixing will offset losses from the drop in Shanghai Shuixing's long position.| Xiandai Investment vs. Jiangxi Naipu Mining | Xiandai Investment vs. Fujian Oriental Silver | Xiandai Investment vs. Bank of Communications | Xiandai Investment vs. Nanjing Putian Telecommunications |
| Shanghai Shuixing vs. PetroChina Co Ltd | Shanghai Shuixing vs. China Mobile Limited | Shanghai Shuixing vs. CNOOC Limited | Shanghai Shuixing vs. Ping An Insurance |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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