Correlation Between Shanghai Phichem and Gansu Huangtai
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By analyzing existing cross correlation between Shanghai Phichem Material and Gansu Huangtai Wine marketing, you can compare the effects of market volatilities on Shanghai Phichem and Gansu Huangtai 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 Shanghai Phichem with a short position of Gansu Huangtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Phichem and Gansu Huangtai.
Diversification Opportunities for Shanghai Phichem and Gansu Huangtai
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shanghai and Gansu is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Phichem Material and Gansu Huangtai Wine marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Huangtai Wine and Shanghai Phichem 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 Shanghai Phichem Material are associated (or correlated) with Gansu Huangtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Huangtai Wine has no effect on the direction of Shanghai Phichem i.e., Shanghai Phichem and Gansu Huangtai go up and down completely randomly.
Pair Corralation between Shanghai Phichem and Gansu Huangtai
Assuming the 90 days trading horizon Shanghai Phichem is expected to generate 1.07 times less return on investment than Gansu Huangtai. In addition to that, Shanghai Phichem is 1.05 times more volatile than Gansu Huangtai Wine marketing. It trades about 0.01 of its total potential returns per unit of risk. Gansu Huangtai Wine marketing is currently generating about 0.01 per unit of volatility. If you would invest 1,905 in Gansu Huangtai Wine marketing on October 16, 2024 and sell it today you would lose (294.00) from holding Gansu Huangtai Wine marketing or give up 15.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Phichem Material vs. Gansu Huangtai Wine marketing
Performance |
| Timeline |
| Shanghai Phichem Material |
| Gansu Huangtai Wine |
Shanghai Phichem and Gansu Huangtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Phichem and Gansu Huangtai
The main advantage of trading using opposite Shanghai Phichem and Gansu Huangtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Phichem position performs unexpectedly, Gansu Huangtai 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 Gansu Huangtai will offset losses from the drop in Gansu Huangtai's long position.| Shanghai Phichem vs. Fujian Newland Computer | Shanghai Phichem vs. Telling Telecommunication Holding | Shanghai Phichem vs. Fibocom Wireless | Shanghai Phichem vs. Runjian Communication Co |
| Gansu Huangtai vs. Wonders Information | Gansu Huangtai vs. Shanghai Phichem Material | Gansu Huangtai vs. Qiming Information Technology | Gansu Huangtai vs. Guangzhou Tinci Materials |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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