Correlation Between Shanghai Metersbonwe and Hi Trend
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By analyzing existing cross correlation between Shanghai Metersbonwe FashionAccessories and Hi Trend TechCo, you can compare the effects of market volatilities on Shanghai Metersbonwe and Hi Trend 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 Hi Trend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Metersbonwe and Hi Trend.
Diversification Opportunities for Shanghai Metersbonwe and Hi Trend
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and 688391 is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Metersbonwe FashionAc and Hi Trend TechCo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hi Trend TechCo 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 Hi Trend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hi Trend TechCo has no effect on the direction of Shanghai Metersbonwe i.e., Shanghai Metersbonwe and Hi Trend go up and down completely randomly.
Pair Corralation between Shanghai Metersbonwe and Hi Trend
Assuming the 90 days trading horizon Shanghai Metersbonwe FashionAccessories is expected to generate 1.01 times more return on investment than Hi Trend. However, Shanghai Metersbonwe is 1.01 times more volatile than Hi Trend TechCo. It trades about 0.02 of its potential returns per unit of risk. Hi Trend TechCo is currently generating about -0.02 per unit of risk. If you would invest 159.00 in Shanghai Metersbonwe FashionAccessories on August 28, 2024 and sell it today you would earn a total of 15.00 from holding Shanghai Metersbonwe FashionAccessories or generate 9.43% 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. Hi Trend TechCo
Performance |
| Timeline |
| Shanghai Metersbonwe |
| Hi Trend TechCo |
Shanghai Metersbonwe and Hi Trend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Metersbonwe and Hi Trend
The main advantage of trading using opposite Shanghai Metersbonwe and Hi Trend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Metersbonwe position performs unexpectedly, Hi Trend 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 Hi Trend will offset losses from the drop in Hi Trend's long position.| Shanghai Metersbonwe vs. Industrial and Commercial | Shanghai Metersbonwe vs. Agricultural Bank of | Shanghai Metersbonwe vs. China Construction Bank | Shanghai Metersbonwe vs. Bank of China |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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