Correlation Between Shanghai Metersbonwe and Beijing UniStrong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Metersbonwe FashionAccessories and Beijing UniStrong Science, you can compare the effects of market volatilities on Shanghai Metersbonwe and Beijing UniStrong 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 Beijing UniStrong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Metersbonwe and Beijing UniStrong.
Diversification Opportunities for Shanghai Metersbonwe and Beijing UniStrong
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Beijing is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Metersbonwe FashionAc and Beijing UniStrong Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing UniStrong Science 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 Beijing UniStrong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing UniStrong Science has no effect on the direction of Shanghai Metersbonwe i.e., Shanghai Metersbonwe and Beijing UniStrong go up and down completely randomly.
Pair Corralation between Shanghai Metersbonwe and Beijing UniStrong
Assuming the 90 days trading horizon Shanghai Metersbonwe FashionAccessories is expected to generate 1.57 times more return on investment than Beijing UniStrong. However, Shanghai Metersbonwe is 1.57 times more volatile than Beijing UniStrong Science. It trades about 0.43 of its potential returns per unit of risk. Beijing UniStrong Science is currently generating about 0.33 per unit of risk. If you would invest 176.00 in Shanghai Metersbonwe FashionAccessories on September 17, 2024 and sell it today you would earn a total of 108.00 from holding Shanghai Metersbonwe FashionAccessories or generate 61.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Metersbonwe FashionAc vs. Beijing UniStrong Science
Performance |
| Timeline |
| Shanghai Metersbonwe |
| Beijing UniStrong Science |
Shanghai Metersbonwe and Beijing UniStrong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Metersbonwe and Beijing UniStrong
The main advantage of trading using opposite Shanghai Metersbonwe and Beijing UniStrong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Metersbonwe position performs unexpectedly, Beijing UniStrong 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 Beijing UniStrong will offset losses from the drop in Beijing UniStrong's long position.| Shanghai Metersbonwe vs. Industrial and Commercial | Shanghai Metersbonwe vs. Agricultural Bank of | Shanghai Metersbonwe vs. China Construction Bank | Shanghai Metersbonwe vs. Bank of China |
| Beijing UniStrong vs. Tibet Huayu Mining | Beijing UniStrong vs. Tsingtao Brewery Co | Beijing UniStrong vs. Shanghai Metersbonwe FashionAccessories | Beijing UniStrong vs. Minmetals Capital 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |