Correlation Between Huasi Agricultural and Shanghai Baosight
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By analyzing existing cross correlation between Huasi Agricultural Development and Shanghai Baosight Software, you can compare the effects of market volatilities on Huasi Agricultural and Shanghai Baosight 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 Huasi Agricultural with a short position of Shanghai Baosight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huasi Agricultural and Shanghai Baosight.
Diversification Opportunities for Huasi Agricultural and Shanghai Baosight
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Huasi and Shanghai is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Huasi Agricultural Development and Shanghai Baosight Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Baosight and Huasi Agricultural 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 Huasi Agricultural Development are associated (or correlated) with Shanghai Baosight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Baosight has no effect on the direction of Huasi Agricultural i.e., Huasi Agricultural and Shanghai Baosight go up and down completely randomly.
Pair Corralation between Huasi Agricultural and Shanghai Baosight
Assuming the 90 days trading horizon Huasi Agricultural Development is expected to generate 1.13 times more return on investment than Shanghai Baosight. However, Huasi Agricultural is 1.13 times more volatile than Shanghai Baosight Software. It trades about 0.23 of its potential returns per unit of risk. Shanghai Baosight Software is currently generating about 0.09 per unit of risk. If you would invest 302.00 in Huasi Agricultural Development on August 30, 2024 and sell it today you would earn a total of 127.00 from holding Huasi Agricultural Development or generate 42.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huasi Agricultural Development vs. Shanghai Baosight Software
Performance |
| Timeline |
| Huasi Agricultural |
| Shanghai Baosight |
Huasi Agricultural and Shanghai Baosight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huasi Agricultural and Shanghai Baosight
The main advantage of trading using opposite Huasi Agricultural and Shanghai Baosight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huasi Agricultural position performs unexpectedly, Shanghai Baosight 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 Baosight will offset losses from the drop in Shanghai Baosight's long position.| Huasi Agricultural vs. China State Construction | Huasi Agricultural vs. China Merchants Shekou | Huasi Agricultural vs. Huafa Industrial Co | Huasi Agricultural vs. China International Capital |
| Shanghai Baosight vs. Bus Online Co | Shanghai Baosight vs. Leaguer Shenzhen MicroElectronics | Shanghai Baosight vs. Semiconductor Manufacturing Electronics | Shanghai Baosight vs. Jiangsu GDK Biotechnology |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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