Correlation Between Shanghai Yaoji and Xinjiang Tianshun
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By analyzing existing cross correlation between Shanghai Yaoji Playing and Xinjiang Tianshun Supply, you can compare the effects of market volatilities on Shanghai Yaoji and Xinjiang Tianshun 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 Xinjiang Tianshun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yaoji and Xinjiang Tianshun.
Diversification Opportunities for Shanghai Yaoji and Xinjiang Tianshun
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Xinjiang is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yaoji Playing and Xinjiang Tianshun Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianshun Supply 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 Xinjiang Tianshun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianshun Supply has no effect on the direction of Shanghai Yaoji i.e., Shanghai Yaoji and Xinjiang Tianshun go up and down completely randomly.
Pair Corralation between Shanghai Yaoji and Xinjiang Tianshun
Assuming the 90 days trading horizon Shanghai Yaoji Playing is expected to generate 1.75 times more return on investment than Xinjiang Tianshun. However, Shanghai Yaoji is 1.75 times more volatile than Xinjiang Tianshun Supply. It trades about 0.22 of its potential returns per unit of risk. Xinjiang Tianshun Supply is currently generating about 0.29 per unit of risk. If you would invest 2,566 in Shanghai Yaoji Playing on September 5, 2024 and sell it today you would earn a total of 553.00 from holding Shanghai Yaoji Playing or generate 21.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yaoji Playing vs. Xinjiang Tianshun Supply
Performance |
| Timeline |
| Shanghai Yaoji Playing |
| Xinjiang Tianshun Supply |
Shanghai Yaoji and Xinjiang Tianshun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yaoji and Xinjiang Tianshun
The main advantage of trading using opposite Shanghai Yaoji and Xinjiang Tianshun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yaoji position performs unexpectedly, Xinjiang Tianshun 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 Xinjiang Tianshun will offset losses from the drop in Xinjiang Tianshun's long position.| Shanghai Yaoji vs. BeiGene | Shanghai Yaoji vs. Kweichow Moutai Co | Shanghai Yaoji vs. Beijing Roborock Technology | Shanghai Yaoji vs. G bits Network Technology |
| Xinjiang Tianshun vs. Innovative Medical Management | Xinjiang Tianshun vs. Sino Platinum Metals Co | Xinjiang Tianshun vs. Tibet Huayu Mining | Xinjiang Tianshun vs. Huaxia Fund Management |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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