Correlation Between Shanghai Metersbonwe and Guangzhou Seagull
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By analyzing existing cross correlation between Shanghai Metersbonwe FashionAccessories and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on Shanghai Metersbonwe and Guangzhou Seagull 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 Shanghai Metersbonwe with a short position of Guangzhou Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Metersbonwe and Guangzhou Seagull.
Diversification Opportunities for Shanghai Metersbonwe and Guangzhou Seagull
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Guangzhou is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Metersbonwe FashionAc and Guangzhou Seagull Kitchen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Seagull Kitchen and Shanghai Metersbonwe 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 Shanghai Metersbonwe FashionAccessories are associated (or correlated) with Guangzhou Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Seagull Kitchen has no effect on the direction of Shanghai Metersbonwe i.e., Shanghai Metersbonwe and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between Shanghai Metersbonwe and Guangzhou Seagull
Assuming the 90 days trading horizon Shanghai Metersbonwe FashionAccessories is expected to generate 1.11 times more return on investment than Guangzhou Seagull. However, Shanghai Metersbonwe is 1.11 times more volatile than Guangzhou Seagull Kitchen. It trades about 0.01 of its potential returns per unit of risk. Guangzhou Seagull Kitchen is currently generating about -0.02 per unit of risk. If you would invest 224.00 in Shanghai Metersbonwe FashionAccessories on September 3, 2024 and sell it today you would lose (22.00) from holding Shanghai Metersbonwe FashionAccessories or give up 9.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Metersbonwe FashionAc vs. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| Shanghai Metersbonwe |
| Guangzhou Seagull Kitchen |
Shanghai Metersbonwe and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Metersbonwe and Guangzhou Seagull
The main advantage of trading using opposite Shanghai Metersbonwe and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Metersbonwe position performs unexpectedly, Guangzhou Seagull 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 Guangzhou Seagull will offset losses from the drop in Guangzhou Seagull's long position.| Shanghai Metersbonwe vs. PetroChina Co Ltd | Shanghai Metersbonwe vs. China Mobile Limited | Shanghai Metersbonwe vs. Industrial and Commercial | Shanghai Metersbonwe vs. China Life Insurance |
| Guangzhou Seagull vs. Sunwave Communications Co | Guangzhou Seagull vs. Tongyu Communication | Guangzhou Seagull vs. Iat Automobile Technology | Guangzhou Seagull vs. Andon Health 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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