Correlation Between Shanghai Phichem and Wonders Information
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By analyzing existing cross correlation between Shanghai Phichem Material and Wonders Information, you can compare the effects of market volatilities on Shanghai Phichem and Wonders Information 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 Wonders Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Phichem and Wonders Information.
Diversification Opportunities for Shanghai Phichem and Wonders Information
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Wonders is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Phichem Material and Wonders Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wonders Information 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 Wonders Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wonders Information has no effect on the direction of Shanghai Phichem i.e., Shanghai Phichem and Wonders Information go up and down completely randomly.
Pair Corralation between Shanghai Phichem and Wonders Information
Assuming the 90 days trading horizon Shanghai Phichem Material is expected to generate 0.68 times more return on investment than Wonders Information. However, Shanghai Phichem Material is 1.48 times less risky than Wonders Information. It trades about 0.26 of its potential returns per unit of risk. Wonders Information is currently generating about 0.02 per unit of risk. If you would invest 1,470 in Shanghai Phichem Material on November 6, 2024 and sell it today you would earn a total of 115.00 from holding Shanghai Phichem Material or generate 7.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Phichem Material vs. Wonders Information
Performance |
| Timeline |
| Shanghai Phichem Material |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Wonders Information |
Shanghai Phichem and Wonders Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Phichem and Wonders Information
The main advantage of trading using opposite Shanghai Phichem and Wonders Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Phichem position performs unexpectedly, Wonders Information 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 Wonders Information will offset losses from the drop in Wonders Information's long position.| Shanghai Phichem vs. Hubei Geoway Investment | Shanghai Phichem vs. Shaanxi Energy Investment | Shanghai Phichem vs. Luyin Investment Group | Shanghai Phichem vs. Shanghai Material Trading |
| Wonders Information vs. Shandong Publishing Media | Wonders Information vs. Zhejiang Huatong Meat | Wonders Information vs. Guangzhou Jinyi Media | Wonders Information vs. Southern PublishingMedia Co |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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