Correlation Between Guangdong Shenglu and Shanghai National
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Shanghai National Center, you can compare the effects of market volatilities on Guangdong Shenglu and Shanghai National 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 Guangdong Shenglu with a short position of Shanghai National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Shanghai National.
Diversification Opportunities for Guangdong Shenglu and Shanghai National
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Shanghai is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and Shanghai National Center in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai National Center and Guangdong Shenglu 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 Guangdong Shenglu Telecommunication are associated (or correlated) with Shanghai National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai National Center has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and Shanghai National go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Shanghai National
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to under-perform the Shanghai National. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Shenglu Telecommunication is 1.3 times less risky than Shanghai National. The stock trades about -0.01 of its potential returns per unit of risk. The Shanghai National Center is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,492 in Shanghai National Center on August 27, 2024 and sell it today you would earn a total of 1,987 from holding Shanghai National Center or generate 56.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Shanghai National Center
Performance |
| Timeline |
| Guangdong Shenglu |
| Shanghai National Center |
Guangdong Shenglu and Shanghai National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Shanghai National
The main advantage of trading using opposite Guangdong Shenglu and Shanghai National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, Shanghai National 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 National will offset losses from the drop in Shanghai National's long position.| Guangdong Shenglu vs. Shenzhen MYS Environmental | Guangdong Shenglu vs. AVIC Fund Management | Guangdong Shenglu vs. Shenzhen Bingchuan Network | Guangdong Shenglu vs. Penghua Shenzhen Energy |
| Shanghai National vs. Kingclean Electric Co | Shanghai National vs. Shanghai Zhangjiang Hi Tech | Shanghai National vs. Dhc Software Co | Shanghai National vs. Guangdong Shenglu Telecommunication |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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