Correlation Between Shanghai Metersbonwe and Tianjin Silvery
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By analyzing existing cross correlation between Shanghai Metersbonwe FashionAccessories and Tianjin Silvery Dragon, you can compare the effects of market volatilities on Shanghai Metersbonwe and Tianjin Silvery 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 Tianjin Silvery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Metersbonwe and Tianjin Silvery.
Diversification Opportunities for Shanghai Metersbonwe and Tianjin Silvery
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Tianjin is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Metersbonwe FashionAc and Tianjin Silvery Dragon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Silvery Dragon 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 Tianjin Silvery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Silvery Dragon has no effect on the direction of Shanghai Metersbonwe i.e., Shanghai Metersbonwe and Tianjin Silvery go up and down completely randomly.
Pair Corralation between Shanghai Metersbonwe and Tianjin Silvery
Assuming the 90 days trading horizon Shanghai Metersbonwe is expected to generate 2.09 times less return on investment than Tianjin Silvery. In addition to that, Shanghai Metersbonwe is 1.24 times more volatile than Tianjin Silvery Dragon. It trades about 0.01 of its total potential returns per unit of risk. Tianjin Silvery Dragon is currently generating about 0.03 per unit of volatility. If you would invest 501.00 in Tianjin Silvery Dragon on August 31, 2024 and sell it today you would earn a total of 81.00 from holding Tianjin Silvery Dragon or generate 16.17% 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. Tianjin Silvery Dragon
Performance |
| Timeline |
| Shanghai Metersbonwe |
| Tianjin Silvery Dragon |
Shanghai Metersbonwe and Tianjin Silvery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Metersbonwe and Tianjin Silvery
The main advantage of trading using opposite Shanghai Metersbonwe and Tianjin Silvery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Metersbonwe position performs unexpectedly, Tianjin Silvery 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 Tianjin Silvery will offset losses from the drop in Tianjin Silvery's long position.| Shanghai Metersbonwe vs. China State Construction | Shanghai Metersbonwe vs. China Merchants Shekou | Shanghai Metersbonwe vs. Huafa Industrial Co | Shanghai Metersbonwe vs. China International Capital |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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