Correlation Between Oriental Times and Shanghai Xinhua
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By analyzing existing cross correlation between Oriental Times Media and Shanghai Xinhua Media, you can compare the effects of market volatilities on Oriental Times and Shanghai Xinhua 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 Oriental Times with a short position of Shanghai Xinhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Times and Shanghai Xinhua.
Diversification Opportunities for Oriental Times and Shanghai Xinhua
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oriental and Shanghai is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Times Media and Shanghai Xinhua Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Xinhua Media and Oriental Times 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 Oriental Times Media are associated (or correlated) with Shanghai Xinhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Xinhua Media has no effect on the direction of Oriental Times i.e., Oriental Times and Shanghai Xinhua go up and down completely randomly.
Pair Corralation between Oriental Times and Shanghai Xinhua
Assuming the 90 days trading horizon Oriental Times Media is expected to generate 1.03 times more return on investment than Shanghai Xinhua. However, Oriental Times is 1.03 times more volatile than Shanghai Xinhua Media. It trades about 0.36 of its potential returns per unit of risk. Shanghai Xinhua Media is currently generating about 0.21 per unit of risk. If you would invest 172.00 in Oriental Times Media on September 2, 2024 and sell it today you would earn a total of 280.00 from holding Oriental Times Media or generate 162.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oriental Times Media vs. Shanghai Xinhua Media
Performance |
| Timeline |
| Oriental Times Media |
| Shanghai Xinhua Media |
Oriental Times and Shanghai Xinhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Times and Shanghai Xinhua
The main advantage of trading using opposite Oriental Times and Shanghai Xinhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Times position performs unexpectedly, Shanghai Xinhua 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 Xinhua will offset losses from the drop in Shanghai Xinhua's long position.| Oriental Times vs. Industrial and Commercial | Oriental Times vs. China Construction Bank | Oriental Times vs. Agricultural Bank of | Oriental Times vs. Bank of China |
| Shanghai Xinhua vs. China Everbright Bank | Shanghai Xinhua vs. Lianhe Chemical Technology | Shanghai Xinhua vs. Xilong Chemical Co | Shanghai Xinhua vs. Nancal Energy Saving Tech |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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