Correlation Between Porton Fine and Shanghai Material
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By analyzing existing cross correlation between Porton Fine Chemicals and Shanghai Material Trading, you can compare the effects of market volatilities on Porton Fine and Shanghai Material 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 Material. Check out your portfolio center. Please also check ongoing floating volatility patterns of Porton Fine and Shanghai Material.
Diversification Opportunities for Porton Fine and Shanghai Material
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Porton and Shanghai is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Porton Fine Chemicals and Shanghai Material Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Material Trading 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 Material. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Material Trading has no effect on the direction of Porton Fine i.e., Porton Fine and Shanghai Material go up and down completely randomly.
Pair Corralation between Porton Fine and Shanghai Material
Assuming the 90 days trading horizon Porton Fine Chemicals is expected to under-perform the Shanghai Material. In addition to that, Porton Fine is 1.04 times more volatile than Shanghai Material Trading. It trades about -0.03 of its total potential returns per unit of risk. Shanghai Material Trading is currently generating about -0.01 per unit of volatility. If you would invest 1,415 in Shanghai Material Trading on October 12, 2024 and sell it today you would lose (461.00) from holding Shanghai Material Trading or give up 32.58% 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 Material Trading
Performance |
| Timeline |
| Porton Fine Chemicals |
| Shanghai Material Trading |
Porton Fine and Shanghai Material Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Porton Fine and Shanghai Material
The main advantage of trading using opposite Porton Fine and Shanghai Material positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Porton Fine position performs unexpectedly, Shanghai Material 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 Material will offset losses from the drop in Shanghai Material's long position.| Porton Fine vs. Sichuan Yahua Industrial | Porton Fine vs. Xinjiang Baodi Mining | Porton Fine vs. Lonkey Industrial Co | Porton Fine vs. Lontium Semiconductor Corp |
| Shanghai Material vs. Ping An Insurance | Shanghai Material vs. Shenzhen Noposion Agrochemicals | Shanghai Material vs. Porton Fine Chemicals | Shanghai Material vs. Beijing Bewinner Communications |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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