Correlation Between Shanghai Metersbonwe and Jiangxi Hengda
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By analyzing existing cross correlation between Shanghai Metersbonwe FashionAccessories and Jiangxi Hengda Hi Tech, you can compare the effects of market volatilities on Shanghai Metersbonwe and Jiangxi Hengda 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 Jiangxi Hengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Metersbonwe and Jiangxi Hengda.
Diversification Opportunities for Shanghai Metersbonwe and Jiangxi Hengda
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Jiangxi is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Metersbonwe FashionAc and Jiangxi Hengda Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Hengda Hi 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 Jiangxi Hengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Hengda Hi has no effect on the direction of Shanghai Metersbonwe i.e., Shanghai Metersbonwe and Jiangxi Hengda go up and down completely randomly.
Pair Corralation between Shanghai Metersbonwe and Jiangxi Hengda
Assuming the 90 days trading horizon Shanghai Metersbonwe FashionAccessories is expected to generate 0.98 times more return on investment than Jiangxi Hengda. However, Shanghai Metersbonwe FashionAccessories is 1.02 times less risky than Jiangxi Hengda. It trades about 0.04 of its potential returns per unit of risk. Jiangxi Hengda Hi Tech is currently generating about 0.01 per unit of risk. If you would invest 163.00 in Shanghai Metersbonwe FashionAccessories on September 4, 2024 and sell it today you would earn a total of 59.00 from holding Shanghai Metersbonwe FashionAccessories or generate 36.2% 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. Jiangxi Hengda Hi Tech
Performance |
| Timeline |
| Shanghai Metersbonwe |
| Jiangxi Hengda Hi |
Shanghai Metersbonwe and Jiangxi Hengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Metersbonwe and Jiangxi Hengda
The main advantage of trading using opposite Shanghai Metersbonwe and Jiangxi Hengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Metersbonwe position performs unexpectedly, Jiangxi Hengda 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 Jiangxi Hengda will offset losses from the drop in Jiangxi Hengda's long position.| Shanghai Metersbonwe vs. Contec Medical Systems | Shanghai Metersbonwe vs. Cowealth Medical China | Shanghai Metersbonwe vs. Maider Medical Industry | Shanghai Metersbonwe vs. Western Superconducting Tech |
| Jiangxi Hengda vs. Dalian Zeus Entertainment | Jiangxi Hengda vs. Kingclean Electric Co | Jiangxi Hengda vs. Ningxia Younglight Chemicals | Jiangxi Hengda vs. Miracll Chemicals 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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