Correlation Between Shanghai Metersbonwe and Gansu Yasheng
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By analyzing existing cross correlation between Shanghai Metersbonwe FashionAccessories and Gansu Yasheng Industrial, you can compare the effects of market volatilities on Shanghai Metersbonwe and Gansu Yasheng 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 Gansu Yasheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Metersbonwe and Gansu Yasheng.
Diversification Opportunities for Shanghai Metersbonwe and Gansu Yasheng
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Gansu is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Metersbonwe FashionAc and Gansu Yasheng Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Yasheng Industrial 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 Gansu Yasheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Yasheng Industrial has no effect on the direction of Shanghai Metersbonwe i.e., Shanghai Metersbonwe and Gansu Yasheng go up and down completely randomly.
Pair Corralation between Shanghai Metersbonwe and Gansu Yasheng
Assuming the 90 days trading horizon Shanghai Metersbonwe FashionAccessories is expected to generate 1.66 times more return on investment than Gansu Yasheng. However, Shanghai Metersbonwe is 1.66 times more volatile than Gansu Yasheng Industrial. It trades about 0.05 of its potential returns per unit of risk. Gansu Yasheng Industrial is currently generating about 0.03 per unit of risk. If you would invest 186.00 in Shanghai Metersbonwe FashionAccessories on September 4, 2024 and sell it today you would earn a total of 58.00 from holding Shanghai Metersbonwe FashionAccessories or generate 31.18% 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. Gansu Yasheng Industrial
Performance |
| Timeline |
| Shanghai Metersbonwe |
| Gansu Yasheng Industrial |
Shanghai Metersbonwe and Gansu Yasheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Metersbonwe and Gansu Yasheng
The main advantage of trading using opposite Shanghai Metersbonwe and Gansu Yasheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Metersbonwe position performs unexpectedly, Gansu Yasheng 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 Gansu Yasheng will offset losses from the drop in Gansu Yasheng'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 |
| Gansu Yasheng vs. Sanbo Hospital Management | Gansu Yasheng vs. Huatian Hotel Group | Gansu Yasheng vs. Andon Health Co | Gansu Yasheng vs. Yunnan Jianzhijia Health Chain |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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