Correlation Between De Rucci and Shanghai Newtouch
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By analyzing existing cross correlation between De Rucci Healthy and Shanghai Newtouch Software, you can compare the effects of market volatilities on De Rucci and Shanghai Newtouch 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 De Rucci with a short position of Shanghai Newtouch. Check out your portfolio center. Please also check ongoing floating volatility patterns of De Rucci and Shanghai Newtouch.
Diversification Opportunities for De Rucci and Shanghai Newtouch
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 001323 and Shanghai is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding De Rucci Healthy and Shanghai Newtouch Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Newtouch and De Rucci 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 De Rucci Healthy are associated (or correlated) with Shanghai Newtouch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Newtouch has no effect on the direction of De Rucci i.e., De Rucci and Shanghai Newtouch go up and down completely randomly.
Pair Corralation between De Rucci and Shanghai Newtouch
Assuming the 90 days trading horizon De Rucci Healthy is expected to generate 0.4 times more return on investment than Shanghai Newtouch. However, De Rucci Healthy is 2.5 times less risky than Shanghai Newtouch. It trades about 0.04 of its potential returns per unit of risk. Shanghai Newtouch Software is currently generating about -0.4 per unit of risk. If you would invest 3,741 in De Rucci Healthy on October 11, 2024 and sell it today you would earn a total of 43.00 from holding De Rucci Healthy or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
De Rucci Healthy vs. Shanghai Newtouch Software
Performance |
| Timeline |
| De Rucci Healthy |
| Shanghai Newtouch |
De Rucci and Shanghai Newtouch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with De Rucci and Shanghai Newtouch
The main advantage of trading using opposite De Rucci and Shanghai Newtouch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if De Rucci position performs unexpectedly, Shanghai Newtouch 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 Newtouch will offset losses from the drop in Shanghai Newtouch's long position.| De Rucci vs. Sunny Loan Top | De Rucci vs. HeBei Jinniu Chemical | De Rucci vs. Nanning Chemical Industry | De Rucci vs. China Everbright Bank |
| Shanghai Newtouch vs. Unisplendour Corp | Shanghai Newtouch vs. Jiangxi Hengda Hi Tech | Shanghai Newtouch vs. Shanghai Shibei Hi Tech | Shanghai Newtouch vs. Maccura Biotechnology 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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