Correlation Between Changsha DIALINE and Shanghai Yaoji
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By analyzing existing cross correlation between Changsha DIALINE New and Shanghai Yaoji Playing, you can compare the effects of market volatilities on Changsha DIALINE 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 Changsha DIALINE with a short position of Shanghai Yaoji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changsha DIALINE and Shanghai Yaoji.
Diversification Opportunities for Changsha DIALINE and Shanghai Yaoji
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Changsha and Shanghai is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Changsha DIALINE New 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 Changsha DIALINE 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 Changsha DIALINE New 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 Changsha DIALINE i.e., Changsha DIALINE and Shanghai Yaoji go up and down completely randomly.
Pair Corralation between Changsha DIALINE and Shanghai Yaoji
Assuming the 90 days trading horizon Changsha DIALINE is expected to generate 7.54 times less return on investment than Shanghai Yaoji. But when comparing it to its historical volatility, Changsha DIALINE New is 1.03 times less risky than Shanghai Yaoji. It trades about 0.03 of its potential returns per unit of risk. Shanghai Yaoji Playing is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 2,566 in Shanghai Yaoji Playing on September 4, 2024 and sell it today you would earn a total of 596.00 from holding Shanghai Yaoji Playing or generate 23.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changsha DIALINE New vs. Shanghai Yaoji Playing
Performance |
| Timeline |
| Changsha DIALINE New |
| Shanghai Yaoji Playing |
Changsha DIALINE and Shanghai Yaoji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changsha DIALINE and Shanghai Yaoji
The main advantage of trading using opposite Changsha DIALINE and Shanghai Yaoji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changsha DIALINE 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.| Changsha DIALINE vs. Shanghai Yaoji Playing | Changsha DIALINE vs. Qingdao Foods Co | Changsha DIALINE vs. Jiajia Food Group | Changsha DIALINE vs. Youyou Foods Co |
| Shanghai Yaoji vs. BeiGene | Shanghai Yaoji vs. Kweichow Moutai Co | Shanghai Yaoji vs. Beijing Roborock Technology | Shanghai Yaoji vs. G bits Network Technology |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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