Correlation Between Shanghai Metersbonwe and Success Electronics
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By analyzing existing cross correlation between Shanghai Metersbonwe FashionAccessories and Success Electronics, you can compare the effects of market volatilities on Shanghai Metersbonwe and Success Electronics 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 Success Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Metersbonwe and Success Electronics.
Diversification Opportunities for Shanghai Metersbonwe and Success Electronics
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Success is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Metersbonwe FashionAc and Success Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Success Electronics 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 Success Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Success Electronics has no effect on the direction of Shanghai Metersbonwe i.e., Shanghai Metersbonwe and Success Electronics go up and down completely randomly.
Pair Corralation between Shanghai Metersbonwe and Success Electronics
Assuming the 90 days trading horizon Shanghai Metersbonwe FashionAccessories is expected to generate 0.98 times more return on investment than Success Electronics. However, Shanghai Metersbonwe FashionAccessories is 1.02 times less risky than Success Electronics. It trades about 0.01 of its potential returns per unit of risk. Success Electronics is currently generating about -0.03 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. Success Electronics
Performance |
| Timeline |
| Shanghai Metersbonwe |
| Success Electronics |
Shanghai Metersbonwe and Success Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Metersbonwe and Success Electronics
The main advantage of trading using opposite Shanghai Metersbonwe and Success Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Metersbonwe position performs unexpectedly, Success Electronics 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 Success Electronics will offset losses from the drop in Success Electronics' 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 |
| Success Electronics vs. Agricultural Bank of | Success Electronics vs. China Construction Bank | Success Electronics vs. Postal Savings Bank | Success Electronics vs. Bank of Communications |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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