Correlation Between China Merchants and Shanghai AtHub
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By analyzing existing cross correlation between China Merchants Shekou and Shanghai AtHub Co, you can compare the effects of market volatilities on China Merchants and Shanghai AtHub 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 China Merchants with a short position of Shanghai AtHub. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Merchants and Shanghai AtHub.
Diversification Opportunities for China Merchants and Shanghai AtHub
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Shanghai is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding China Merchants Shekou and Shanghai AtHub Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai AtHub and China Merchants 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 China Merchants Shekou are associated (or correlated) with Shanghai AtHub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai AtHub has no effect on the direction of China Merchants i.e., China Merchants and Shanghai AtHub go up and down completely randomly.
Pair Corralation between China Merchants and Shanghai AtHub
Assuming the 90 days trading horizon China Merchants Shekou is expected to under-perform the Shanghai AtHub. But the stock apears to be less risky and, when comparing its historical volatility, China Merchants Shekou is 3.52 times less risky than Shanghai AtHub. The stock trades about -0.2 of its potential returns per unit of risk. The Shanghai AtHub Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,702 in Shanghai AtHub Co on October 17, 2024 and sell it today you would earn a total of 156.00 from holding Shanghai AtHub Co or generate 9.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Merchants Shekou vs. Shanghai AtHub Co
Performance |
| Timeline |
| China Merchants Shekou |
| Shanghai AtHub |
China Merchants and Shanghai AtHub Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Merchants and Shanghai AtHub
The main advantage of trading using opposite China Merchants and Shanghai AtHub positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Merchants position performs unexpectedly, Shanghai AtHub 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 AtHub will offset losses from the drop in Shanghai AtHub's long position.| China Merchants vs. Jiangnan Mould Plastic | China Merchants vs. Unisplendour Corp | China Merchants vs. Strait Innovation Internet | China Merchants vs. Sichuan Jinshi Technology |
| Shanghai AtHub vs. China State Construction | Shanghai AtHub vs. Poly Real Estate | Shanghai AtHub vs. China Vanke Co | Shanghai AtHub vs. China Merchants Shekou |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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