Correlation Between Shanghai Liangxin and Beijing Mainstreets
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Liangxin Electrical and Beijing Mainstreets Investment, you can compare the effects of market volatilities on Shanghai Liangxin and Beijing Mainstreets 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 Liangxin with a short position of Beijing Mainstreets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Liangxin and Beijing Mainstreets.
Diversification Opportunities for Shanghai Liangxin and Beijing Mainstreets
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shanghai and Beijing is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Liangxin Electrical and Beijing Mainstreets Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Mainstreets and Shanghai Liangxin 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 Liangxin Electrical are associated (or correlated) with Beijing Mainstreets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Mainstreets has no effect on the direction of Shanghai Liangxin i.e., Shanghai Liangxin and Beijing Mainstreets go up and down completely randomly.
Pair Corralation between Shanghai Liangxin and Beijing Mainstreets
Assuming the 90 days trading horizon Shanghai Liangxin Electrical is expected to generate 0.72 times more return on investment than Beijing Mainstreets. However, Shanghai Liangxin Electrical is 1.38 times less risky than Beijing Mainstreets. It trades about 0.39 of its potential returns per unit of risk. Beijing Mainstreets Investment is currently generating about 0.25 per unit of risk. If you would invest 683.00 in Shanghai Liangxin Electrical on November 28, 2024 and sell it today you would earn a total of 85.00 from holding Shanghai Liangxin Electrical or generate 12.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Shanghai Liangxin Electrical vs. Beijing Mainstreets Investment
Performance |
| Timeline |
| Shanghai Liangxin |
| Beijing Mainstreets |
Shanghai Liangxin and Beijing Mainstreets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Liangxin and Beijing Mainstreets
The main advantage of trading using opposite Shanghai Liangxin and Beijing Mainstreets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Liangxin position performs unexpectedly, Beijing Mainstreets 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 Beijing Mainstreets will offset losses from the drop in Beijing Mainstreets' long position.| Shanghai Liangxin vs. iSoftStone Information Technology | Shanghai Liangxin vs. Dhc Software Co | Shanghai Liangxin vs. Pengxin International Mining | Shanghai Liangxin vs. Keda Clean Energy |
| Beijing Mainstreets vs. Lecron Energy Saving | Beijing Mainstreets vs. Soochow Suzhou Industrial | Beijing Mainstreets vs. Rising Nonferrous Metals | Beijing Mainstreets vs. Rongcheer Industrial Technology |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| CEOs Directory Screen CEOs from public companies around the world |