Correlation Between Longmaster Information and Shanghai Rongtai
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By analyzing existing cross correlation between Longmaster Information Tech and Shanghai Rongtai Health, you can compare the effects of market volatilities on Longmaster Information and Shanghai Rongtai 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 Longmaster Information with a short position of Shanghai Rongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longmaster Information and Shanghai Rongtai.
Diversification Opportunities for Longmaster Information and Shanghai Rongtai
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Longmaster and Shanghai is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Longmaster Information Tech and Shanghai Rongtai Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rongtai Health and Longmaster Information 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 Longmaster Information Tech are associated (or correlated) with Shanghai Rongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rongtai Health has no effect on the direction of Longmaster Information i.e., Longmaster Information and Shanghai Rongtai go up and down completely randomly.
Pair Corralation between Longmaster Information and Shanghai Rongtai
Assuming the 90 days trading horizon Longmaster Information Tech is expected to under-perform the Shanghai Rongtai. In addition to that, Longmaster Information is 1.06 times more volatile than Shanghai Rongtai Health. It trades about -0.44 of its total potential returns per unit of risk. Shanghai Rongtai Health is currently generating about -0.22 per unit of volatility. If you would invest 1,566 in Shanghai Rongtai Health on October 12, 2024 and sell it today you would lose (188.00) from holding Shanghai Rongtai Health or give up 12.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longmaster Information Tech vs. Shanghai Rongtai Health
Performance |
| Timeline |
| Longmaster Information |
| Shanghai Rongtai Health |
Longmaster Information and Shanghai Rongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longmaster Information and Shanghai Rongtai
The main advantage of trading using opposite Longmaster Information and Shanghai Rongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longmaster Information position performs unexpectedly, Shanghai Rongtai 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 Rongtai will offset losses from the drop in Shanghai Rongtai's long position.| Longmaster Information vs. Omnijoi Media Corp | Longmaster Information vs. Guilin Seamild Foods | Longmaster Information vs. Shuhua Sports Co | Longmaster Information vs. Great Sun Foods Co |
| Shanghai Rongtai vs. Longmaster Information Tech | Shanghai Rongtai vs. Hubei Geoway Investment | Shanghai Rongtai vs. ButOne Information Corp | Shanghai Rongtai vs. Jinxiandai Information Industry |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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