Correlation Between Guangdong Silvere and Shanghai Newtouch
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Silvere Sci and Shanghai Newtouch Software, you can compare the effects of market volatilities on Guangdong Silvere and Shanghai Newtouch 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 Guangdong Silvere with a short position of Shanghai Newtouch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Silvere and Shanghai Newtouch.
Diversification Opportunities for Guangdong Silvere and Shanghai Newtouch
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Shanghai is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Silvere Sci and Shanghai Newtouch Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Newtouch and Guangdong Silvere 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 Guangdong Silvere Sci are associated (or correlated) with Shanghai Newtouch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Newtouch has no effect on the direction of Guangdong Silvere i.e., Guangdong Silvere and Shanghai Newtouch go up and down completely randomly.
Pair Corralation between Guangdong Silvere and Shanghai Newtouch
Assuming the 90 days trading horizon Guangdong Silvere Sci is expected to generate 0.93 times more return on investment than Shanghai Newtouch. However, Guangdong Silvere Sci is 1.07 times less risky than Shanghai Newtouch. It trades about 0.04 of its potential returns per unit of risk. Shanghai Newtouch Software is currently generating about -0.36 per unit of risk. If you would invest 599.00 in Guangdong Silvere Sci on October 23, 2024 and sell it today you would earn a total of 11.00 from holding Guangdong Silvere Sci or generate 1.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Silvere Sci vs. Shanghai Newtouch Software
Performance |
| Timeline |
| Guangdong Silvere Sci |
| Shanghai Newtouch |
Guangdong Silvere and Shanghai Newtouch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Silvere and Shanghai Newtouch
The main advantage of trading using opposite Guangdong Silvere and Shanghai Newtouch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Silvere position performs unexpectedly, Shanghai Newtouch 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 Newtouch will offset losses from the drop in Shanghai Newtouch's long position.| Guangdong Silvere vs. Zijin Mining Group | Guangdong Silvere vs. Wanhua Chemical Group | Guangdong Silvere vs. Baoshan Iron Steel | Guangdong Silvere vs. Shandong Gold Mining |
| Shanghai Newtouch vs. Aba Chemicals Corp | Shanghai Newtouch vs. HeNan Splendor Science | Shanghai Newtouch vs. Hubei Xingfa Chemicals | Shanghai Newtouch vs. Dymatic Chemicals |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |