Correlation Between Songz Automobile and Beijing Shanghai
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By analyzing existing cross correlation between Songz Automobile Air and Beijing Shanghai High Speed, you can compare the effects of market volatilities on Songz Automobile and Beijing Shanghai 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 Songz Automobile with a short position of Beijing Shanghai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Songz Automobile and Beijing Shanghai.
Diversification Opportunities for Songz Automobile and Beijing Shanghai
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Songz and Beijing is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Songz Automobile Air and Beijing Shanghai High Speed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Shanghai High and Songz Automobile 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 Songz Automobile Air are associated (or correlated) with Beijing Shanghai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Shanghai High has no effect on the direction of Songz Automobile i.e., Songz Automobile and Beijing Shanghai go up and down completely randomly.
Pair Corralation between Songz Automobile and Beijing Shanghai
Assuming the 90 days trading horizon Songz Automobile Air is expected to under-perform the Beijing Shanghai. In addition to that, Songz Automobile is 1.3 times more volatile than Beijing Shanghai High Speed. It trades about -0.02 of its total potential returns per unit of risk. Beijing Shanghai High Speed is currently generating about 0.35 per unit of volatility. If you would invest 551.00 in Beijing Shanghai High Speed on September 13, 2024 and sell it today you would earn a total of 71.00 from holding Beijing Shanghai High Speed or generate 12.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Songz Automobile Air vs. Beijing Shanghai High Speed
Performance |
| Timeline |
| Songz Automobile Air |
| Beijing Shanghai High |
Songz Automobile and Beijing Shanghai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Songz Automobile and Beijing Shanghai
The main advantage of trading using opposite Songz Automobile and Beijing Shanghai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Songz Automobile position performs unexpectedly, Beijing Shanghai 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 Beijing Shanghai will offset losses from the drop in Beijing Shanghai's long position.| Songz Automobile vs. BeiGene | Songz Automobile vs. Kweichow Moutai Co | Songz Automobile vs. Beijing Roborock Technology | Songz Automobile vs. G bits Network Technology |
| Beijing Shanghai vs. Ming Yang Smart | Beijing Shanghai vs. 159681 | Beijing Shanghai vs. 159005 | Beijing Shanghai vs. Loctek Ergonomic Technology |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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