Correlation Between Shanghai Metersbonwe and Heilongjiang Publishing
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By analyzing existing cross correlation between Shanghai Metersbonwe FashionAccessories and Heilongjiang Publishing Media, you can compare the effects of market volatilities on Shanghai Metersbonwe and Heilongjiang Publishing 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 Heilongjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Metersbonwe and Heilongjiang Publishing.
Diversification Opportunities for Shanghai Metersbonwe and Heilongjiang Publishing
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Heilongjiang is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Metersbonwe FashionAc and Heilongjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Publishing 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 Heilongjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Publishing has no effect on the direction of Shanghai Metersbonwe i.e., Shanghai Metersbonwe and Heilongjiang Publishing go up and down completely randomly.
Pair Corralation between Shanghai Metersbonwe and Heilongjiang Publishing
Assuming the 90 days trading horizon Shanghai Metersbonwe FashionAccessories is expected to generate 1.2 times more return on investment than Heilongjiang Publishing. However, Shanghai Metersbonwe is 1.2 times more volatile than Heilongjiang Publishing Media. It trades about 0.28 of its potential returns per unit of risk. Heilongjiang Publishing Media is currently generating about 0.21 per unit of risk. If you would invest 186.00 in Shanghai Metersbonwe FashionAccessories on September 5, 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Metersbonwe FashionAc vs. Heilongjiang Publishing Media
Performance |
| Timeline |
| Shanghai Metersbonwe |
| Heilongjiang Publishing |
Shanghai Metersbonwe and Heilongjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Metersbonwe and Heilongjiang Publishing
The main advantage of trading using opposite Shanghai Metersbonwe and Heilongjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Metersbonwe position performs unexpectedly, Heilongjiang Publishing 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 Heilongjiang Publishing will offset losses from the drop in Heilongjiang Publishing's long position.| Shanghai Metersbonwe vs. Shaanxi Beiyuan Chemical | Shanghai Metersbonwe vs. Yangmei Chemical Co | Shanghai Metersbonwe vs. Xiangyu Medical Co | Shanghai Metersbonwe vs. Guangzhou Jointas Chemical |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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