Correlation Between Chengdu Spaceon and Shanghai Material
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By analyzing existing cross correlation between Chengdu Spaceon Electronics and Shanghai Material Trading, you can compare the effects of market volatilities on Chengdu Spaceon and Shanghai Material 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 Chengdu Spaceon with a short position of Shanghai Material. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Spaceon and Shanghai Material.
Diversification Opportunities for Chengdu Spaceon and Shanghai Material
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Chengdu and Shanghai is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Spaceon Electronics and Shanghai Material Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Material Trading and Chengdu Spaceon 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 Chengdu Spaceon Electronics are associated (or correlated) with Shanghai Material. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Material Trading has no effect on the direction of Chengdu Spaceon i.e., Chengdu Spaceon and Shanghai Material go up and down completely randomly.
Pair Corralation between Chengdu Spaceon and Shanghai Material
Assuming the 90 days trading horizon Chengdu Spaceon Electronics is expected to generate 0.93 times more return on investment than Shanghai Material. However, Chengdu Spaceon Electronics is 1.08 times less risky than Shanghai Material. It trades about 0.13 of its potential returns per unit of risk. Shanghai Material Trading is currently generating about 0.01 per unit of risk. If you would invest 1,460 in Chengdu Spaceon Electronics on November 5, 2024 and sell it today you would earn a total of 50.00 from holding Chengdu Spaceon Electronics or generate 3.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Spaceon Electronics vs. Shanghai Material Trading
Performance |
| Timeline |
| Chengdu Spaceon Elec |
| Shanghai Material Trading |
Chengdu Spaceon and Shanghai Material Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Spaceon and Shanghai Material
The main advantage of trading using opposite Chengdu Spaceon and Shanghai Material positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Spaceon position performs unexpectedly, Shanghai Material 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 Shanghai Material will offset losses from the drop in Shanghai Material's long position.| Chengdu Spaceon vs. Industrial and Commercial | Chengdu Spaceon vs. Kweichow Moutai Co | Chengdu Spaceon vs. Agricultural Bank of | Chengdu Spaceon vs. China Mobile Limited |
| Shanghai Material vs. Linzhou Heavy Machinery | Shanghai Material vs. Hangzhou Zhongya Machinery | Shanghai Material vs. Senci Electric Machinery | Shanghai Material vs. Hongrun Construction 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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