Correlation Between Shanghai Metersbonwe and Dawning Information
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By analyzing existing cross correlation between Shanghai Metersbonwe FashionAccessories and Dawning Information Industry, you can compare the effects of market volatilities on Shanghai Metersbonwe and Dawning Information 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 Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Metersbonwe and Dawning Information.
Diversification Opportunities for Shanghai Metersbonwe and Dawning Information
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Dawning is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Metersbonwe FashionAc and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning Information 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 Dawning Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawning Information has no effect on the direction of Shanghai Metersbonwe i.e., Shanghai Metersbonwe and Dawning Information go up and down completely randomly.
Pair Corralation between Shanghai Metersbonwe and Dawning Information
Assuming the 90 days trading horizon Shanghai Metersbonwe is expected to generate 14.29 times less return on investment than Dawning Information. But when comparing it to its historical volatility, Shanghai Metersbonwe FashionAccessories is 1.18 times less risky than Dawning Information. It trades about 0.01 of its potential returns per unit of risk. Dawning Information Industry is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,299 in Dawning Information Industry on September 3, 2024 and sell it today you would earn a total of 6,181 from holding Dawning Information Industry or generate 268.86% 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. Dawning Information Industry
Performance |
| Timeline |
| Shanghai Metersbonwe |
| Dawning Information |
Shanghai Metersbonwe and Dawning Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Metersbonwe and Dawning Information
The main advantage of trading using opposite Shanghai Metersbonwe and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Metersbonwe position performs unexpectedly, Dawning Information 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 Dawning Information will offset losses from the drop in Dawning Information's long position.| Shanghai Metersbonwe vs. PetroChina Co Ltd | Shanghai Metersbonwe vs. China Mobile Limited | Shanghai Metersbonwe vs. Industrial and Commercial | Shanghai Metersbonwe vs. China Life Insurance |
| Dawning Information vs. Shanghai Xinhua Media | Dawning Information vs. Shanghai Metersbonwe FashionAccessories | Dawning Information vs. Guangdong Jingyi Metal | Dawning Information vs. Chengtun Mining Group |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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