Correlation Between Hongrun Construction and Shanghai Metersbonwe
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By analyzing existing cross correlation between Hongrun Construction Group and Shanghai Metersbonwe FashionAccessories, you can compare the effects of market volatilities on Hongrun Construction and Shanghai Metersbonwe 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 Hongrun Construction with a short position of Shanghai Metersbonwe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hongrun Construction and Shanghai Metersbonwe.
Diversification Opportunities for Hongrun Construction and Shanghai Metersbonwe
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hongrun and Shanghai is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Hongrun Construction Group and Shanghai Metersbonwe FashionAc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Metersbonwe and Hongrun Construction 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 Hongrun Construction Group are associated (or correlated) with Shanghai Metersbonwe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Metersbonwe has no effect on the direction of Hongrun Construction i.e., Hongrun Construction and Shanghai Metersbonwe go up and down completely randomly.
Pair Corralation between Hongrun Construction and Shanghai Metersbonwe
Assuming the 90 days trading horizon Hongrun Construction Group is expected to under-perform the Shanghai Metersbonwe. But the stock apears to be less risky and, when comparing its historical volatility, Hongrun Construction Group is 1.44 times less risky than Shanghai Metersbonwe. The stock trades about -0.01 of its potential returns per unit of risk. The Shanghai Metersbonwe FashionAccessories is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 198.00 in Shanghai Metersbonwe FashionAccessories on August 29, 2024 and sell it today you would lose (22.00) from holding Shanghai Metersbonwe FashionAccessories or give up 11.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hongrun Construction Group vs. Shanghai Metersbonwe FashionAc
Performance |
| Timeline |
| Hongrun Construction |
| Shanghai Metersbonwe |
Hongrun Construction and Shanghai Metersbonwe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hongrun Construction and Shanghai Metersbonwe
The main advantage of trading using opposite Hongrun Construction and Shanghai Metersbonwe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hongrun Construction position performs unexpectedly, Shanghai Metersbonwe 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 Metersbonwe will offset losses from the drop in Shanghai Metersbonwe's long position.| Hongrun Construction vs. Ming Yang Smart | Hongrun Construction vs. 159681 | Hongrun Construction vs. 159005 | Hongrun Construction vs. Loctek Ergonomic Technology |
| Shanghai Metersbonwe vs. Industrial and Commercial | Shanghai Metersbonwe vs. Agricultural Bank of | Shanghai Metersbonwe vs. China Construction Bank | Shanghai Metersbonwe vs. Bank of China |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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