Correlation Between 159681 and Beijing Shanghai
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By analyzing existing cross correlation between 159681 and Beijing Shanghai High Speed, you can compare the effects of market volatilities on 159681 and Beijing Shanghai 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 159681 with a short position of Beijing Shanghai. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and Beijing Shanghai.
Diversification Opportunities for 159681 and Beijing Shanghai
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 159681 and Beijing is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding 159681 and Beijing Shanghai High Speed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Shanghai High and 159681 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 159681 are associated (or correlated) with Beijing Shanghai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Shanghai High has no effect on the direction of 159681 i.e., 159681 and Beijing Shanghai go up and down completely randomly.
Pair Corralation between 159681 and Beijing Shanghai
Assuming the 90 days trading horizon 159681 is expected to under-perform the Beijing Shanghai. In addition to that, 159681 is 1.34 times more volatile than Beijing Shanghai High Speed. It trades about -0.11 of its total potential returns per unit of risk. Beijing Shanghai High Speed is currently generating about 0.38 per unit of volatility. If you would invest 557.00 in Beijing Shanghai High Speed on September 14, 2024 and sell it today you would earn a total of 80.00 from holding Beijing Shanghai High Speed or generate 14.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
159681 vs. Beijing Shanghai High Speed
Performance |
| Timeline |
| 159681 |
| Beijing Shanghai High |
159681 and Beijing Shanghai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159681 and Beijing Shanghai
The main advantage of trading using opposite 159681 and Beijing Shanghai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 position performs unexpectedly, Beijing Shanghai 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 Shanghai will offset losses from the drop in Beijing Shanghai's long position.The idea behind 159681 and Beijing Shanghai High Speed pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Beijing Shanghai vs. Tianshui Huatian Technology | Beijing Shanghai vs. Shenyang Chemical Industry | Beijing Shanghai vs. Suzhou Douson Drilling | Beijing Shanghai vs. Cofco Biochemical Anhui |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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