Correlation Between Shanghai Metersbonwe and XinJiang GuoTong
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By analyzing existing cross correlation between Shanghai Metersbonwe FashionAccessories and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Shanghai Metersbonwe and XinJiang GuoTong 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 XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Metersbonwe and XinJiang GuoTong.
Diversification Opportunities for Shanghai Metersbonwe and XinJiang GuoTong
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and XinJiang is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Metersbonwe FashionAc and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline 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 XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of Shanghai Metersbonwe i.e., Shanghai Metersbonwe and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Shanghai Metersbonwe and XinJiang GuoTong
Assuming the 90 days trading horizon Shanghai Metersbonwe FashionAccessories is expected to generate 1.07 times more return on investment than XinJiang GuoTong. However, Shanghai Metersbonwe is 1.07 times more volatile than XinJiang GuoTong Pipeline. It trades about 0.04 of its potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about 0.0 per unit of risk. If you would invest 161.00 in Shanghai Metersbonwe FashionAccessories on September 1, 2024 and sell it today you would earn a total of 41.00 from holding Shanghai Metersbonwe FashionAccessories or generate 25.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Metersbonwe FashionAc vs. XinJiang GuoTong Pipeline
Performance |
| Timeline |
| Shanghai Metersbonwe |
| XinJiang GuoTong Pipeline |
Shanghai Metersbonwe and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Metersbonwe and XinJiang GuoTong
The main advantage of trading using opposite Shanghai Metersbonwe and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Metersbonwe position performs unexpectedly, XinJiang GuoTong 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 XinJiang GuoTong will offset losses from the drop in XinJiang GuoTong's long position.| Shanghai Metersbonwe vs. Cultural Investment Holdings | Shanghai Metersbonwe vs. Gome Telecom Equipment | Shanghai Metersbonwe vs. Bus Online Co | Shanghai Metersbonwe vs. Holitech Technology Co |
| XinJiang GuoTong vs. Industrial and Commercial | XinJiang GuoTong vs. Agricultural Bank of | XinJiang GuoTong vs. China Construction Bank | XinJiang GuoTong 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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