Correlation Between Success Electronics and Shandong Longda
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By analyzing existing cross correlation between Success Electronics and Shandong Longda Meat, you can compare the effects of market volatilities on Success Electronics and Shandong Longda 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 Success Electronics with a short position of Shandong Longda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Success Electronics and Shandong Longda.
Diversification Opportunities for Success Electronics and Shandong Longda
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Success and Shandong is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Success Electronics and Shandong Longda Meat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Longda Meat and Success Electronics 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 Success Electronics are associated (or correlated) with Shandong Longda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Longda Meat has no effect on the direction of Success Electronics i.e., Success Electronics and Shandong Longda go up and down completely randomly.
Pair Corralation between Success Electronics and Shandong Longda
Assuming the 90 days trading horizon Success Electronics is expected to generate 1.21 times more return on investment than Shandong Longda. However, Success Electronics is 1.21 times more volatile than Shandong Longda Meat. It trades about 0.01 of its potential returns per unit of risk. Shandong Longda Meat is currently generating about -0.09 per unit of risk. If you would invest 385.00 in Success Electronics on October 30, 2024 and sell it today you would lose (3.00) from holding Success Electronics or give up 0.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Success Electronics vs. Shandong Longda Meat
Performance |
| Timeline |
| Success Electronics |
| Shandong Longda Meat |
Success Electronics and Shandong Longda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Success Electronics and Shandong Longda
The main advantage of trading using opposite Success Electronics and Shandong Longda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Success Electronics position performs unexpectedly, Shandong Longda 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 Shandong Longda will offset losses from the drop in Shandong Longda's long position.| Success Electronics vs. Citic Offshore Helicopter | Success Electronics vs. Duzhe Publishing Media | Success Electronics vs. Jiangsu Phoenix Publishing | Success Electronics vs. Thunder Software Technology |
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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