Correlation Between Sharetronic Data and Longxing Chemical
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By analyzing existing cross correlation between Sharetronic Data Technology and Longxing Chemical Stock, you can compare the effects of market volatilities on Sharetronic Data and Longxing Chemical 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 Sharetronic Data with a short position of Longxing Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sharetronic Data and Longxing Chemical.
Diversification Opportunities for Sharetronic Data and Longxing Chemical
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sharetronic and Longxing is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Sharetronic Data Technology and Longxing Chemical Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longxing Chemical Stock and Sharetronic Data 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 Sharetronic Data Technology are associated (or correlated) with Longxing Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longxing Chemical Stock has no effect on the direction of Sharetronic Data i.e., Sharetronic Data and Longxing Chemical go up and down completely randomly.
Pair Corralation between Sharetronic Data and Longxing Chemical
Assuming the 90 days trading horizon Sharetronic Data Technology is expected to under-perform the Longxing Chemical. In addition to that, Sharetronic Data is 1.32 times more volatile than Longxing Chemical Stock. It trades about -0.11 of its total potential returns per unit of risk. Longxing Chemical Stock is currently generating about -0.13 per unit of volatility. If you would invest 618.00 in Longxing Chemical Stock on November 3, 2024 and sell it today you would lose (62.00) from holding Longxing Chemical Stock or give up 10.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sharetronic Data Technology vs. Longxing Chemical Stock
Performance |
| Timeline |
| Sharetronic Data Tec |
| Longxing Chemical Stock |
Sharetronic Data and Longxing Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sharetronic Data and Longxing Chemical
The main advantage of trading using opposite Sharetronic Data and Longxing Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sharetronic Data position performs unexpectedly, Longxing Chemical 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 Longxing Chemical will offset losses from the drop in Longxing Chemical's long position.| Sharetronic Data vs. Sinosteel Engineering and | Sharetronic Data vs. China National Software | Sharetronic Data vs. Fangda Special Steel | Sharetronic Data vs. Elite Color Environmental |
| Longxing Chemical vs. Hygon Information Technology | Longxing Chemical vs. YLZ Information Tech | Longxing Chemical vs. New Hope Dairy | Longxing Chemical vs. Eastroc Beverage Group |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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