Correlation Between Shanghai Yaoji and China Resources
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By analyzing existing cross correlation between Shanghai Yaoji Playing and China Resources Microelectronics, you can compare the effects of market volatilities on Shanghai Yaoji and China Resources 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 China Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yaoji and China Resources.
Diversification Opportunities for Shanghai Yaoji and China Resources
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and China is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yaoji Playing and China Resources Microelectroni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Resources Micr 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 China Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Resources Micr has no effect on the direction of Shanghai Yaoji i.e., Shanghai Yaoji and China Resources go up and down completely randomly.
Pair Corralation between Shanghai Yaoji and China Resources
Assuming the 90 days trading horizon Shanghai Yaoji Playing is expected to generate 1.57 times more return on investment than China Resources. However, Shanghai Yaoji is 1.57 times more volatile than China Resources Microelectronics. It trades about 0.07 of its potential returns per unit of risk. China Resources Microelectronics is currently generating about 0.0 per unit of risk. If you would invest 1,325 in Shanghai Yaoji Playing on September 12, 2024 and sell it today you would earn a total of 1,986 from holding Shanghai Yaoji Playing or generate 149.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shanghai Yaoji Playing vs. China Resources Microelectroni
Performance |
| Timeline |
| Shanghai Yaoji Playing |
| China Resources Micr |
Shanghai Yaoji and China Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yaoji and China Resources
The main advantage of trading using opposite Shanghai Yaoji and China Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yaoji position performs unexpectedly, China Resources 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 China Resources will offset losses from the drop in China Resources' long position.| Shanghai Yaoji vs. China Satellite Communications | Shanghai Yaoji vs. By health | Shanghai Yaoji vs. Yunnan Jianzhijia Health Chain | Shanghai Yaoji vs. China World Trade |
| China Resources vs. Gansu Jiu Steel | China Resources vs. Shandong Mining Machinery | China Resources vs. Aba Chemicals Corp | China Resources vs. BlueFocus Communication Group |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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