Correlation Between Shanghai Metersbonwe and Beijing SPC
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By analyzing existing cross correlation between Shanghai Metersbonwe FashionAccessories and Beijing SPC Environment, you can compare the effects of market volatilities on Shanghai Metersbonwe and Beijing SPC 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 SPC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Metersbonwe and Beijing SPC.
Diversification Opportunities for Shanghai Metersbonwe and Beijing SPC
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Beijing is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Metersbonwe FashionAc and Beijing SPC Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing SPC Environment 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 SPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing SPC Environment has no effect on the direction of Shanghai Metersbonwe i.e., Shanghai Metersbonwe and Beijing SPC go up and down completely randomly.
Pair Corralation between Shanghai Metersbonwe and Beijing SPC
Assuming the 90 days trading horizon Shanghai Metersbonwe FashionAccessories is expected to generate 1.82 times more return on investment than Beijing SPC. However, Shanghai Metersbonwe is 1.82 times more volatile than Beijing SPC Environment. It trades about 0.05 of its potential returns per unit of risk. Beijing SPC Environment is currently generating about -0.02 per unit of risk. If you would invest 177.00 in Shanghai Metersbonwe FashionAccessories on September 12, 2024 and sell it today you would earn a total of 76.00 from holding Shanghai Metersbonwe FashionAccessories or generate 42.94% 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 SPC Environment
Performance |
| Timeline |
| Shanghai Metersbonwe |
| Beijing SPC Environment |
Shanghai Metersbonwe and Beijing SPC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Metersbonwe and Beijing SPC
The main advantage of trading using opposite Shanghai Metersbonwe and Beijing SPC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Metersbonwe position performs unexpectedly, Beijing SPC 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 SPC will offset losses from the drop in Beijing SPC's long position.| Shanghai Metersbonwe vs. Lutian Machinery Co | Shanghai Metersbonwe vs. PetroChina Co Ltd | Shanghai Metersbonwe vs. Bank of China | Shanghai Metersbonwe vs. Gansu Jiu Steel |
| Beijing SPC vs. Agricultural Bank of | Beijing SPC vs. Industrial and Commercial | Beijing SPC vs. Bank of China | Beijing SPC vs. PetroChina Co Ltd |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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