Correlation Between Shanghai Metersbonwe and Anhui Huaren
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By analyzing existing cross correlation between Shanghai Metersbonwe FashionAccessories and Anhui Huaren Health, you can compare the effects of market volatilities on Shanghai Metersbonwe and Anhui Huaren 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 Anhui Huaren. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Metersbonwe and Anhui Huaren.
Diversification Opportunities for Shanghai Metersbonwe and Anhui Huaren
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Anhui is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Metersbonwe FashionAc and Anhui Huaren Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huaren Health 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 Anhui Huaren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huaren Health has no effect on the direction of Shanghai Metersbonwe i.e., Shanghai Metersbonwe and Anhui Huaren go up and down completely randomly.
Pair Corralation between Shanghai Metersbonwe and Anhui Huaren
Assuming the 90 days trading horizon Shanghai Metersbonwe FashionAccessories is expected to generate 0.95 times more return on investment than Anhui Huaren. However, Shanghai Metersbonwe FashionAccessories is 1.05 times less risky than Anhui Huaren. It trades about 0.27 of its potential returns per unit of risk. Anhui Huaren Health is currently generating about 0.08 per unit of risk. If you would invest 138.00 in Shanghai Metersbonwe FashionAccessories on September 4, 2024 and sell it today you would earn a total of 106.00 from holding Shanghai Metersbonwe FashionAccessories or generate 76.81% 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. Anhui Huaren Health
Performance |
| Timeline |
| Shanghai Metersbonwe |
| Anhui Huaren Health |
Shanghai Metersbonwe and Anhui Huaren Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Metersbonwe and Anhui Huaren
The main advantage of trading using opposite Shanghai Metersbonwe and Anhui Huaren positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Metersbonwe position performs unexpectedly, Anhui Huaren 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 Anhui Huaren will offset losses from the drop in Anhui Huaren'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 |
| Anhui Huaren vs. Sportsoul Co Ltd | Anhui Huaren vs. Rising Nonferrous Metals | Anhui Huaren vs. China Life Insurance | Anhui Huaren vs. Shanghai Metersbonwe FashionAccessories |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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