Correlation Between Porton Fine and Shanghai Yaoji
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By analyzing existing cross correlation between Porton Fine Chemicals and Shanghai Yaoji Playing, you can compare the effects of market volatilities on Porton Fine and Shanghai Yaoji 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 Porton Fine with a short position of Shanghai Yaoji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Porton Fine and Shanghai Yaoji.
Diversification Opportunities for Porton Fine and Shanghai Yaoji
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Porton and Shanghai is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Porton Fine Chemicals and Shanghai Yaoji Playing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yaoji Playing and Porton Fine 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 Porton Fine Chemicals are associated (or correlated) with Shanghai Yaoji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yaoji Playing has no effect on the direction of Porton Fine i.e., Porton Fine and Shanghai Yaoji go up and down completely randomly.
Pair Corralation between Porton Fine and Shanghai Yaoji
Assuming the 90 days trading horizon Porton Fine Chemicals is expected to under-perform the Shanghai Yaoji. But the stock apears to be less risky and, when comparing its historical volatility, Porton Fine Chemicals is 1.9 times less risky than Shanghai Yaoji. The stock trades about -0.09 of its potential returns per unit of risk. The Shanghai Yaoji Playing is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 2,850 in Shanghai Yaoji Playing on October 23, 2024 and sell it today you would lose (95.00) from holding Shanghai Yaoji Playing or give up 3.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Porton Fine Chemicals vs. Shanghai Yaoji Playing
Performance |
| Timeline |
| Porton Fine Chemicals |
| Shanghai Yaoji Playing |
Porton Fine and Shanghai Yaoji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Porton Fine and Shanghai Yaoji
The main advantage of trading using opposite Porton Fine and Shanghai Yaoji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Porton Fine position performs unexpectedly, Shanghai Yaoji 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 Yaoji will offset losses from the drop in Shanghai Yaoji's long position.| Porton Fine vs. Guangdong Qunxing Toys | Porton Fine vs. Anhui Deli Household | Porton Fine vs. Anhui Gujing Distillery | Porton Fine vs. Chahua Modern Housewares |
| Shanghai Yaoji vs. Maoming Petro Chemical Shihua | Shanghai Yaoji vs. Ningxia Younglight Chemicals | Shanghai Yaoji vs. Jiangsu Jinling Sports | Shanghai Yaoji vs. Hubeiyichang Transportation Group |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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