Correlation Between Do Fluoride and Shanghai Broadband
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By analyzing existing cross correlation between Do Fluoride Chemicals Co and Shanghai Broadband Technology, you can compare the effects of market volatilities on Do Fluoride and Shanghai Broadband 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 Do Fluoride with a short position of Shanghai Broadband. Check out your portfolio center. Please also check ongoing floating volatility patterns of Do Fluoride and Shanghai Broadband.
Diversification Opportunities for Do Fluoride and Shanghai Broadband
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 002407 and Shanghai is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Do Fluoride Chemicals Co and Shanghai Broadband Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Broadband and Do Fluoride 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 Do Fluoride Chemicals Co are associated (or correlated) with Shanghai Broadband. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Broadband has no effect on the direction of Do Fluoride i.e., Do Fluoride and Shanghai Broadband go up and down completely randomly.
Pair Corralation between Do Fluoride and Shanghai Broadband
Assuming the 90 days trading horizon Do Fluoride is expected to generate 2.64 times less return on investment than Shanghai Broadband. In addition to that, Do Fluoride is 1.39 times more volatile than Shanghai Broadband Technology. It trades about 0.1 of its total potential returns per unit of risk. Shanghai Broadband Technology is currently generating about 0.38 per unit of volatility. If you would invest 328.00 in Shanghai Broadband Technology on August 28, 2024 and sell it today you would earn a total of 76.00 from holding Shanghai Broadband Technology or generate 23.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Do Fluoride Chemicals Co vs. Shanghai Broadband Technology
Performance |
| Timeline |
| Do Fluoride Chemicals |
| Shanghai Broadband |
Do Fluoride and Shanghai Broadband Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Do Fluoride and Shanghai Broadband
The main advantage of trading using opposite Do Fluoride and Shanghai Broadband positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Do Fluoride position performs unexpectedly, Shanghai Broadband 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 Shanghai Broadband will offset losses from the drop in Shanghai Broadband's long position.| Do Fluoride vs. Shanghai Broadband Technology | Do Fluoride vs. Heilongjiang Transport Development | Do Fluoride vs. Silkroad Visual Technology | Do Fluoride vs. Hangzhou Weiguang Electronic |
| Shanghai Broadband vs. Iat Automobile Technology | Shanghai Broadband vs. Haima Automobile Group | Shanghai Broadband vs. Zhongtong Guomai Communication | Shanghai Broadband vs. Anhui Transport Consulting |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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