Correlation Between Sinosteel Engineering and Shanghai Rongtai
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By analyzing existing cross correlation between Sinosteel Engineering and and Shanghai Rongtai Health, you can compare the effects of market volatilities on Sinosteel Engineering and Shanghai Rongtai 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 Sinosteel Engineering with a short position of Shanghai Rongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinosteel Engineering and Shanghai Rongtai.
Diversification Opportunities for Sinosteel Engineering and Shanghai Rongtai
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinosteel and Shanghai is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Sinosteel Engineering and and Shanghai Rongtai Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rongtai Health and Sinosteel Engineering 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 Sinosteel Engineering and are associated (or correlated) with Shanghai Rongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rongtai Health has no effect on the direction of Sinosteel Engineering i.e., Sinosteel Engineering and Shanghai Rongtai go up and down completely randomly.
Pair Corralation between Sinosteel Engineering and Shanghai Rongtai
Assuming the 90 days trading horizon Sinosteel Engineering is expected to generate 1.21 times less return on investment than Shanghai Rongtai. In addition to that, Sinosteel Engineering is 1.24 times more volatile than Shanghai Rongtai Health. It trades about 0.18 of its total potential returns per unit of risk. Shanghai Rongtai Health is currently generating about 0.27 per unit of volatility. If you would invest 1,383 in Shanghai Rongtai Health on September 4, 2024 and sell it today you would earn a total of 145.00 from holding Shanghai Rongtai Health or generate 10.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinosteel Engineering and vs. Shanghai Rongtai Health
Performance |
| Timeline |
| Sinosteel Engineering and |
| Shanghai Rongtai Health |
Sinosteel Engineering and Shanghai Rongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinosteel Engineering and Shanghai Rongtai
The main advantage of trading using opposite Sinosteel Engineering and Shanghai Rongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinosteel Engineering position performs unexpectedly, Shanghai Rongtai 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 Rongtai will offset losses from the drop in Shanghai Rongtai's long position.| Sinosteel Engineering vs. China Life Insurance | Sinosteel Engineering vs. Cinda Securities Co | Sinosteel Engineering vs. Piotech Inc A | Sinosteel Engineering vs. Dongxing Sec Co |
| Shanghai Rongtai vs. Shenzhen MYS Environmental | Shanghai Rongtai vs. Sinosteel Engineering and | Shanghai Rongtai vs. Qijing Machinery | Shanghai Rongtai vs. Ningbo Construction 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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