Correlation Between Uroica Mining and Shanghai Electric
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By analyzing existing cross correlation between Uroica Mining Safety and Shanghai Electric Group, you can compare the effects of market volatilities on Uroica Mining and Shanghai Electric 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 Uroica Mining with a short position of Shanghai Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uroica Mining and Shanghai Electric.
Diversification Opportunities for Uroica Mining and Shanghai Electric
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Uroica and Shanghai is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Uroica Mining Safety and Shanghai Electric Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Electric and Uroica Mining 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 Uroica Mining Safety are associated (or correlated) with Shanghai Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Electric has no effect on the direction of Uroica Mining i.e., Uroica Mining and Shanghai Electric go up and down completely randomly.
Pair Corralation between Uroica Mining and Shanghai Electric
Assuming the 90 days trading horizon Uroica Mining is expected to generate 2.01 times less return on investment than Shanghai Electric. But when comparing it to its historical volatility, Uroica Mining Safety is 1.33 times less risky than Shanghai Electric. It trades about 0.19 of its potential returns per unit of risk. Shanghai Electric Group is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 365.00 in Shanghai Electric Group on September 2, 2024 and sell it today you would earn a total of 485.00 from holding Shanghai Electric Group or generate 132.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uroica Mining Safety vs. Shanghai Electric Group
Performance |
| Timeline |
| Uroica Mining Safety |
| Shanghai Electric |
Uroica Mining and Shanghai Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uroica Mining and Shanghai Electric
The main advantage of trading using opposite Uroica Mining and Shanghai Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uroica Mining position performs unexpectedly, Shanghai Electric 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 Electric will offset losses from the drop in Shanghai Electric's long position.| Uroica Mining vs. Ye Chiu Metal | Uroica Mining vs. Tianshan Aluminum Group | Uroica Mining vs. Beijing Jiaman Dress | Uroica Mining vs. Yili Chuanning Biotechnology |
| Shanghai Electric vs. New China Life | Shanghai Electric vs. Ming Yang Smart | Shanghai Electric vs. 159681 | Shanghai Electric vs. 159005 |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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