Correlation Between Shanghai Yaoji and Bank of Communications
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By analyzing existing cross correlation between Shanghai Yaoji Playing and Bank of Communications, you can compare the effects of market volatilities on Shanghai Yaoji and Bank of Communications 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 Bank of Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yaoji and Bank of Communications.
Diversification Opportunities for Shanghai Yaoji and Bank of Communications
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shanghai and Bank is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yaoji Playing and Bank of Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Communications 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 Bank of Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Communications has no effect on the direction of Shanghai Yaoji i.e., Shanghai Yaoji and Bank of Communications go up and down completely randomly.
Pair Corralation between Shanghai Yaoji and Bank of Communications
Assuming the 90 days trading horizon Shanghai Yaoji Playing is expected to under-perform the Bank of Communications. In addition to that, Shanghai Yaoji is 2.87 times more volatile than Bank of Communications. It trades about -0.11 of its total potential returns per unit of risk. Bank of Communications is currently generating about 0.06 per unit of volatility. If you would invest 712.00 in Bank of Communications on October 16, 2024 and sell it today you would earn a total of 24.00 from holding Bank of Communications or generate 3.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yaoji Playing vs. Bank of Communications
Performance |
| Timeline |
| Shanghai Yaoji Playing |
| Bank of Communications |
Shanghai Yaoji and Bank of Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yaoji and Bank of Communications
The main advantage of trading using opposite Shanghai Yaoji and Bank of Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yaoji position performs unexpectedly, Bank of Communications 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 Bank of Communications will offset losses from the drop in Bank of Communications' long position.| Shanghai Yaoji vs. Anhui Huaren Health | Shanghai Yaoji vs. Mingchen Health Co | Shanghai Yaoji vs. Shanghai Sanyou Medical | Shanghai Yaoji vs. Meinian Onehealth Healthcare |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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