Correlation Between Shanghai Phichem and Bank of Communications
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Phichem Material and Bank of Communications, you can compare the effects of market volatilities on Shanghai Phichem and Bank of Communications 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 Bank of Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Phichem and Bank of Communications.
Diversification Opportunities for Shanghai Phichem and Bank of Communications
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shanghai and Bank is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Phichem Material and Bank of Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Communications 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 Bank of Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Communications has no effect on the direction of Shanghai Phichem i.e., Shanghai Phichem and Bank of Communications go up and down completely randomly.
Pair Corralation between Shanghai Phichem and Bank of Communications
Assuming the 90 days trading horizon Shanghai Phichem Material is expected to generate 1.55 times more return on investment than Bank of Communications. However, Shanghai Phichem is 1.55 times more volatile than Bank of Communications. It trades about -0.05 of its potential returns per unit of risk. Bank of Communications is currently generating about -0.29 per unit of risk. If you would invest 1,659 in Shanghai Phichem Material on October 29, 2024 and sell it today you would lose (45.00) from holding Shanghai Phichem Material or give up 2.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Phichem Material vs. Bank of Communications
Performance |
| Timeline |
| Shanghai Phichem Material |
| Bank of Communications |
Shanghai Phichem and Bank of Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Phichem and Bank of Communications
The main advantage of trading using opposite Shanghai Phichem and Bank of Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Phichem position performs unexpectedly, Bank of Communications 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 Bank of Communications will offset losses from the drop in Bank of Communications' long position.The idea behind Shanghai Phichem Material and Bank of Communications pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Bank of Communications vs. HUAQIN TECHNOLOGY LTD | Bank of Communications vs. Linktel Technologies Co | Bank of Communications vs. Shenzhen Urban Transport | Bank of Communications vs. Dhc Software 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |