Correlation Between Shengtak New and Changjiang Jinggong
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By analyzing existing cross correlation between Shengtak New Material and Changjiang Jinggong Steel, you can compare the effects of market volatilities on Shengtak New and Changjiang Jinggong 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 Shengtak New with a short position of Changjiang Jinggong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengtak New and Changjiang Jinggong.
Diversification Opportunities for Shengtak New and Changjiang Jinggong
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shengtak and Changjiang is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Shengtak New Material and Changjiang Jinggong Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Jinggong Steel and Shengtak New 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 Shengtak New Material are associated (or correlated) with Changjiang Jinggong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Jinggong Steel has no effect on the direction of Shengtak New i.e., Shengtak New and Changjiang Jinggong go up and down completely randomly.
Pair Corralation between Shengtak New and Changjiang Jinggong
Assuming the 90 days trading horizon Shengtak New Material is expected to generate 2.28 times more return on investment than Changjiang Jinggong. However, Shengtak New is 2.28 times more volatile than Changjiang Jinggong Steel. It trades about 0.01 of its potential returns per unit of risk. Changjiang Jinggong Steel is currently generating about -0.04 per unit of risk. If you would invest 3,471 in Shengtak New Material on October 18, 2024 and sell it today you would lose (238.00) from holding Shengtak New Material or give up 6.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shengtak New Material vs. Changjiang Jinggong Steel
Performance |
| Timeline |
| Shengtak New Material |
| Changjiang Jinggong Steel |
Shengtak New and Changjiang Jinggong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengtak New and Changjiang Jinggong
The main advantage of trading using opposite Shengtak New and Changjiang Jinggong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengtak New position performs unexpectedly, Changjiang Jinggong 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 Changjiang Jinggong will offset losses from the drop in Changjiang Jinggong's long position.| Shengtak New vs. Changjiang Jinggong Steel | Shengtak New vs. 360 Security Technology | Shengtak New vs. Keeson Technology Corp | Shengtak New vs. Maxvision Technology Corp |
| Changjiang Jinggong vs. Lonkey Industrial Co | Changjiang Jinggong vs. Soochow Suzhou Industrial | Changjiang Jinggong vs. Jahen Household Products | Changjiang Jinggong vs. Western Metal 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 Stocks Directory module to find actively traded stocks across global markets.
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