Correlation Between Shandong Longda and AUPU Home
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By analyzing existing cross correlation between Shandong Longda Meat and AUPU Home Style, you can compare the effects of market volatilities on Shandong Longda and AUPU Home 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 Shandong Longda with a short position of AUPU Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Longda and AUPU Home.
Diversification Opportunities for Shandong Longda and AUPU Home
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and AUPU is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Longda Meat and AUPU Home Style in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUPU Home Style and Shandong Longda 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 Shandong Longda Meat are associated (or correlated) with AUPU Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AUPU Home Style has no effect on the direction of Shandong Longda i.e., Shandong Longda and AUPU Home go up and down completely randomly.
Pair Corralation between Shandong Longda and AUPU Home
Assuming the 90 days trading horizon Shandong Longda Meat is expected to under-perform the AUPU Home. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Longda Meat is 1.02 times less risky than AUPU Home. The stock trades about -0.37 of its potential returns per unit of risk. The AUPU Home Style is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 1,109 in AUPU Home Style on October 25, 2024 and sell it today you would lose (43.00) from holding AUPU Home Style or give up 3.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Longda Meat vs. AUPU Home Style
Performance |
| Timeline |
| Shandong Longda Meat |
| AUPU Home Style |
Shandong Longda and AUPU Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Longda and AUPU Home
The main advantage of trading using opposite Shandong Longda and AUPU Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Longda position performs unexpectedly, AUPU Home 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 AUPU Home will offset losses from the drop in AUPU Home's long position.| Shandong Longda vs. Ye Chiu Metal | Shandong Longda vs. Rising Nonferrous Metals | Shandong Longda vs. Uroica Mining Safety | Shandong Longda vs. Guangdong Jingyi Metal |
| AUPU Home vs. PetroChina Co Ltd | AUPU Home vs. Gansu Jiu Steel | AUPU Home vs. Ming Yang Smart | AUPU Home vs. Aba Chemicals Corp |
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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