Correlation Between Dongguan Aohai and Shanghai Shuixing
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dongguan Aohai Technology and Shanghai Shuixing Home, you can compare the effects of market volatilities on Dongguan Aohai and Shanghai Shuixing 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 Dongguan Aohai with a short position of Shanghai Shuixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongguan Aohai and Shanghai Shuixing.
Diversification Opportunities for Dongguan Aohai and Shanghai Shuixing
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dongguan and Shanghai is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Dongguan Aohai Technology and Shanghai Shuixing Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shuixing Home and Dongguan Aohai 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 Dongguan Aohai Technology are associated (or correlated) with Shanghai Shuixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shuixing Home has no effect on the direction of Dongguan Aohai i.e., Dongguan Aohai and Shanghai Shuixing go up and down completely randomly.
Pair Corralation between Dongguan Aohai and Shanghai Shuixing
Assuming the 90 days trading horizon Dongguan Aohai is expected to generate 1.02 times less return on investment than Shanghai Shuixing. In addition to that, Dongguan Aohai is 1.37 times more volatile than Shanghai Shuixing Home. It trades about 0.02 of its total potential returns per unit of risk. Shanghai Shuixing Home is currently generating about 0.03 per unit of volatility. If you would invest 1,329 in Shanghai Shuixing Home on October 15, 2024 and sell it today you would earn a total of 243.00 from holding Shanghai Shuixing Home or generate 18.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongguan Aohai Technology vs. Shanghai Shuixing Home
Performance |
| Timeline |
| Dongguan Aohai Technology |
| Shanghai Shuixing Home |
Dongguan Aohai and Shanghai Shuixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongguan Aohai and Shanghai Shuixing
The main advantage of trading using opposite Dongguan Aohai and Shanghai Shuixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongguan Aohai position performs unexpectedly, Shanghai Shuixing 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 Shuixing will offset losses from the drop in Shanghai Shuixing's long position.| Dongguan Aohai vs. Shanghai Broadband Technology | Dongguan Aohai vs. Dazhong Transportation Group | Dongguan Aohai vs. Yingde Greatchem Chemicals | Dongguan Aohai vs. Chongqing Road Bridge |
| Shanghai Shuixing vs. Henan Shuanghui Investment | Shanghai Shuixing vs. Tianshui Huatian Technology | Shanghai Shuixing vs. 360 Security Technology | Shanghai Shuixing vs. Luyin Investment 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |