Correlation Between Guangdong Shenglu and Shanghai Shuixing
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Shanghai Shuixing Home, you can compare the effects of market volatilities on Guangdong Shenglu and Shanghai Shuixing 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 Shuixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Shanghai Shuixing.
Diversification Opportunities for Guangdong Shenglu and Shanghai Shuixing
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangdong and Shanghai is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and Shanghai Shuixing Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shuixing Home 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 Shuixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shuixing Home has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and Shanghai Shuixing go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Shanghai Shuixing
Assuming the 90 days trading horizon Guangdong Shenglu is expected to generate 1.59 times less return on investment than Shanghai Shuixing. But when comparing it to its historical volatility, Guangdong Shenglu Telecommunication is 1.07 times less risky than Shanghai Shuixing. It trades about 0.09 of its potential returns per unit of risk. Shanghai Shuixing Home is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,097 in Shanghai Shuixing Home on October 18, 2024 and sell it today you would earn a total of 458.00 from holding Shanghai Shuixing Home or generate 41.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Shanghai Shuixing Home
Performance |
| Timeline |
| Guangdong Shenglu |
| Shanghai Shuixing Home |
Guangdong Shenglu and Shanghai Shuixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Shanghai Shuixing
The main advantage of trading using opposite Guangdong Shenglu and Shanghai Shuixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, Shanghai Shuixing 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 Shuixing will offset losses from the drop in Shanghai Shuixing's long position.| Guangdong Shenglu vs. ZYF Lopsking Aluminum | Guangdong Shenglu vs. Guangdong Jinma Entertainment | Guangdong Shenglu vs. Chengdu B ray Media | Guangdong Shenglu vs. JiShi Media Co |
| Shanghai Shuixing vs. Xiangyang Automobile Bearing | Shanghai Shuixing vs. Guangdong Shenglu Telecommunication | Shanghai Shuixing vs. Anhui Tongguan Copper | Shanghai Shuixing vs. Anhui Jianghuai Automobile |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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