Correlation Between Shantou Wanshun and Tibet Summit
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By analyzing existing cross correlation between Shantou Wanshun Package and Tibet Summit Resources, you can compare the effects of market volatilities on Shantou Wanshun and Tibet Summit 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 Shantou Wanshun with a short position of Tibet Summit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantou Wanshun and Tibet Summit.
Diversification Opportunities for Shantou Wanshun and Tibet Summit
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shantou and Tibet is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shantou Wanshun Package and Tibet Summit Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tibet Summit Resources and Shantou Wanshun 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 Shantou Wanshun Package are associated (or correlated) with Tibet Summit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tibet Summit Resources has no effect on the direction of Shantou Wanshun i.e., Shantou Wanshun and Tibet Summit go up and down completely randomly.
Pair Corralation between Shantou Wanshun and Tibet Summit
Assuming the 90 days trading horizon Shantou Wanshun Package is expected to generate 1.11 times more return on investment than Tibet Summit. However, Shantou Wanshun is 1.11 times more volatile than Tibet Summit Resources. It trades about -0.02 of its potential returns per unit of risk. Tibet Summit Resources is currently generating about -0.04 per unit of risk. If you would invest 956.00 in Shantou Wanshun Package on September 4, 2024 and sell it today you would lose (382.00) from holding Shantou Wanshun Package or give up 39.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shantou Wanshun Package vs. Tibet Summit Resources
Performance |
| Timeline |
| Shantou Wanshun Package |
| Tibet Summit Resources |
Shantou Wanshun and Tibet Summit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shantou Wanshun and Tibet Summit
The main advantage of trading using opposite Shantou Wanshun and Tibet Summit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantou Wanshun position performs unexpectedly, Tibet Summit 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 Tibet Summit will offset losses from the drop in Tibet Summit's long position.| Shantou Wanshun vs. Zijin Mining Group | Shantou Wanshun vs. Wanhua Chemical Group | Shantou Wanshun vs. Baoshan Iron Steel | Shantou Wanshun vs. Rongsheng Petrochemical Co |
| Tibet Summit vs. Fiberhome Telecommunication Technologies | Tibet Summit vs. Allwin Telecommunication Co | Tibet Summit vs. Nuode Investment Co | Tibet Summit vs. Wintao Communications Co |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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