Correlation Between Shanghai Metersbonwe and Shenzhen Bioeasy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Metersbonwe FashionAccessories and Shenzhen Bioeasy Biotechnology, you can compare the effects of market volatilities on Shanghai Metersbonwe and Shenzhen Bioeasy 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 Shenzhen Bioeasy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Metersbonwe and Shenzhen Bioeasy.
Diversification Opportunities for Shanghai Metersbonwe and Shenzhen Bioeasy
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Shenzhen is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Metersbonwe FashionAc and Shenzhen Bioeasy Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Bioeasy Bio 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 Shenzhen Bioeasy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Bioeasy Bio has no effect on the direction of Shanghai Metersbonwe i.e., Shanghai Metersbonwe and Shenzhen Bioeasy go up and down completely randomly.
Pair Corralation between Shanghai Metersbonwe and Shenzhen Bioeasy
Assuming the 90 days trading horizon Shanghai Metersbonwe FashionAccessories is expected to generate 1.32 times more return on investment than Shenzhen Bioeasy. However, Shanghai Metersbonwe is 1.32 times more volatile than Shenzhen Bioeasy Biotechnology. It trades about 0.08 of its potential returns per unit of risk. Shenzhen Bioeasy Biotechnology is currently generating about 0.01 per unit of risk. If you would invest 164.00 in Shanghai Metersbonwe FashionAccessories on August 25, 2024 and sell it today you would earn a total of 9.00 from holding Shanghai Metersbonwe FashionAccessories or generate 5.49% 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. Shenzhen Bioeasy Biotechnology
Performance |
| Timeline |
| Shanghai Metersbonwe |
| Shenzhen Bioeasy Bio |
Shanghai Metersbonwe and Shenzhen Bioeasy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Metersbonwe and Shenzhen Bioeasy
The main advantage of trading using opposite Shanghai Metersbonwe and Shenzhen Bioeasy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Metersbonwe position performs unexpectedly, Shenzhen Bioeasy 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 Shenzhen Bioeasy will offset losses from the drop in Shenzhen Bioeasy'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 |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |