Correlation Between Masterwork Machinery and Shanghai Pudong
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By analyzing existing cross correlation between Masterwork Machinery and Shanghai Pudong Development, you can compare the effects of market volatilities on Masterwork Machinery and Shanghai Pudong 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 Masterwork Machinery with a short position of Shanghai Pudong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Masterwork Machinery and Shanghai Pudong.
Diversification Opportunities for Masterwork Machinery and Shanghai Pudong
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Masterwork and Shanghai is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Masterwork Machinery and Shanghai Pudong Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Pudong Deve and Masterwork Machinery 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 Masterwork Machinery are associated (or correlated) with Shanghai Pudong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Pudong Deve has no effect on the direction of Masterwork Machinery i.e., Masterwork Machinery and Shanghai Pudong go up and down completely randomly.
Pair Corralation between Masterwork Machinery and Shanghai Pudong
Assuming the 90 days trading horizon Masterwork Machinery is expected to generate 2.59 times less return on investment than Shanghai Pudong. In addition to that, Masterwork Machinery is 2.59 times more volatile than Shanghai Pudong Development. It trades about 0.01 of its total potential returns per unit of risk. Shanghai Pudong Development is currently generating about 0.08 per unit of volatility. If you would invest 694.00 in Shanghai Pudong Development on October 26, 2024 and sell it today you would earn a total of 345.00 from holding Shanghai Pudong Development or generate 49.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Masterwork Machinery vs. Shanghai Pudong Development
Performance |
| Timeline |
| Masterwork Machinery |
| Shanghai Pudong Deve |
Masterwork Machinery and Shanghai Pudong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Masterwork Machinery and Shanghai Pudong
The main advantage of trading using opposite Masterwork Machinery and Shanghai Pudong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Masterwork Machinery position performs unexpectedly, Shanghai Pudong 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 Pudong will offset losses from the drop in Shanghai Pudong's long position.| Masterwork Machinery vs. PetroChina Co Ltd | Masterwork Machinery vs. Industrial and Commercial | Masterwork Machinery vs. China Petroleum Chemical | Masterwork Machinery vs. China Construction Bank |
| Shanghai Pudong vs. Sichuan Fulin Transportation | Shanghai Pudong vs. Sportsoul Co Ltd | Shanghai Pudong vs. Eastern Communications Co | Shanghai Pudong vs. Wuhan Yangtze Communication |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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