Correlation Between Shanghai Metersbonwe and Suzhou UIGreen
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By analyzing existing cross correlation between Shanghai Metersbonwe FashionAccessories and Suzhou UIGreen Micro, you can compare the effects of market volatilities on Shanghai Metersbonwe and Suzhou UIGreen 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 Suzhou UIGreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Metersbonwe and Suzhou UIGreen.
Diversification Opportunities for Shanghai Metersbonwe and Suzhou UIGreen
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Suzhou is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Metersbonwe FashionAc and Suzhou UIGreen Micro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou UIGreen Micro 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 Suzhou UIGreen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou UIGreen Micro has no effect on the direction of Shanghai Metersbonwe i.e., Shanghai Metersbonwe and Suzhou UIGreen go up and down completely randomly.
Pair Corralation between Shanghai Metersbonwe and Suzhou UIGreen
Assuming the 90 days trading horizon Shanghai Metersbonwe FashionAccessories is expected to generate 1.78 times more return on investment than Suzhou UIGreen. However, Shanghai Metersbonwe is 1.78 times more volatile than Suzhou UIGreen Micro. It trades about 0.27 of its potential returns per unit of risk. Suzhou UIGreen Micro is currently generating about -0.06 per unit of risk. If you would invest 195.00 in Shanghai Metersbonwe FashionAccessories on September 13, 2024 and sell it today you would earn a total of 69.00 from holding Shanghai Metersbonwe FashionAccessories or generate 35.38% 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. Suzhou UIGreen Micro
Performance |
| Timeline |
| Shanghai Metersbonwe |
| Suzhou UIGreen Micro |
Shanghai Metersbonwe and Suzhou UIGreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Metersbonwe and Suzhou UIGreen
The main advantage of trading using opposite Shanghai Metersbonwe and Suzhou UIGreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Metersbonwe position performs unexpectedly, Suzhou UIGreen 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 Suzhou UIGreen will offset losses from the drop in Suzhou UIGreen'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 |
| Suzhou UIGreen vs. Heren Health Co | Suzhou UIGreen vs. Vontron Technology Co | Suzhou UIGreen vs. Everjoy Health Group | Suzhou UIGreen vs. Kingsignal Technology Co |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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