Correlation Between Shanghai Metersbonwe and Thinkingdom Media
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By analyzing existing cross correlation between Shanghai Metersbonwe FashionAccessories and Thinkingdom Media Group, you can compare the effects of market volatilities on Shanghai Metersbonwe and Thinkingdom Media 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 Thinkingdom Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Metersbonwe and Thinkingdom Media.
Diversification Opportunities for Shanghai Metersbonwe and Thinkingdom Media
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Thinkingdom is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Metersbonwe FashionAc and Thinkingdom Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkingdom Media 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 Thinkingdom Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thinkingdom Media has no effect on the direction of Shanghai Metersbonwe i.e., Shanghai Metersbonwe and Thinkingdom Media go up and down completely randomly.
Pair Corralation between Shanghai Metersbonwe and Thinkingdom Media
Assuming the 90 days trading horizon Shanghai Metersbonwe is expected to generate 2.9 times less return on investment than Thinkingdom Media. In addition to that, Shanghai Metersbonwe is 1.09 times more volatile than Thinkingdom Media Group. It trades about 0.01 of its total potential returns per unit of risk. Thinkingdom Media Group is currently generating about 0.02 per unit of volatility. If you would invest 1,937 in Thinkingdom Media Group on September 3, 2024 and sell it today you would earn a total of 299.00 from holding Thinkingdom Media Group or generate 15.44% 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. Thinkingdom Media Group
Performance |
| Timeline |
| Shanghai Metersbonwe |
| Thinkingdom Media |
Shanghai Metersbonwe and Thinkingdom Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Metersbonwe and Thinkingdom Media
The main advantage of trading using opposite Shanghai Metersbonwe and Thinkingdom Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Metersbonwe position performs unexpectedly, Thinkingdom Media 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 Thinkingdom Media will offset losses from the drop in Thinkingdom Media'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 |
| Thinkingdom Media vs. Gansu Jiu Steel | Thinkingdom Media vs. Ming Yang Smart | Thinkingdom Media vs. Aba Chemicals Corp | Thinkingdom Media vs. Loctek Ergonomic Technology |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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