Correlation Between Shanghai Yaoji and Inner Mongolia
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By analyzing existing cross correlation between Shanghai Yaoji Playing and Inner Mongolia Yuan, you can compare the effects of market volatilities on Shanghai Yaoji and Inner Mongolia 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 Shanghai Yaoji with a short position of Inner Mongolia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yaoji and Inner Mongolia.
Diversification Opportunities for Shanghai Yaoji and Inner Mongolia
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Inner is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yaoji Playing and Inner Mongolia Yuan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inner Mongolia Yuan and Shanghai Yaoji 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 Shanghai Yaoji Playing are associated (or correlated) with Inner Mongolia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inner Mongolia Yuan has no effect on the direction of Shanghai Yaoji i.e., Shanghai Yaoji and Inner Mongolia go up and down completely randomly.
Pair Corralation between Shanghai Yaoji and Inner Mongolia
Assuming the 90 days trading horizon Shanghai Yaoji Playing is expected to generate 1.53 times more return on investment than Inner Mongolia. However, Shanghai Yaoji is 1.53 times more volatile than Inner Mongolia Yuan. It trades about 0.07 of its potential returns per unit of risk. Inner Mongolia Yuan is currently generating about -0.01 per unit of risk. If you would invest 1,362 in Shanghai Yaoji Playing on September 2, 2024 and sell it today you would earn a total of 1,816 from holding Shanghai Yaoji Playing or generate 133.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yaoji Playing vs. Inner Mongolia Yuan
Performance |
| Timeline |
| Shanghai Yaoji Playing |
| Inner Mongolia Yuan |
Shanghai Yaoji and Inner Mongolia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yaoji and Inner Mongolia
The main advantage of trading using opposite Shanghai Yaoji and Inner Mongolia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yaoji position performs unexpectedly, Inner Mongolia 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 Inner Mongolia will offset losses from the drop in Inner Mongolia's long position.| Shanghai Yaoji vs. Nanjing Putian Telecommunications | Shanghai Yaoji vs. Shenzhen Hifuture Electric | Shanghai Yaoji vs. Tianjin Realty Development | Shanghai Yaoji vs. Shenyang Huitian Thermal |
| Inner Mongolia vs. Jinhe Biotechnology Co | Inner Mongolia vs. Lootom Telcovideo Network | Inner Mongolia vs. Minmetals Capital Co | Inner Mongolia vs. Shenzhen Topway Video |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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