Correlation Between Highbroad Advanced and Shanghai Sanyou
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By analyzing existing cross correlation between Highbroad Advanced Material and Shanghai Sanyou Medical, you can compare the effects of market volatilities on Highbroad Advanced and Shanghai Sanyou 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 Highbroad Advanced with a short position of Shanghai Sanyou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highbroad Advanced and Shanghai Sanyou.
Diversification Opportunities for Highbroad Advanced and Shanghai Sanyou
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Highbroad and Shanghai is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Highbroad Advanced Material and Shanghai Sanyou Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Sanyou Medical and Highbroad Advanced 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 Highbroad Advanced Material are associated (or correlated) with Shanghai Sanyou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Sanyou Medical has no effect on the direction of Highbroad Advanced i.e., Highbroad Advanced and Shanghai Sanyou go up and down completely randomly.
Pair Corralation between Highbroad Advanced and Shanghai Sanyou
Assuming the 90 days trading horizon Highbroad Advanced Material is expected to generate 1.02 times more return on investment than Shanghai Sanyou. However, Highbroad Advanced is 1.02 times more volatile than Shanghai Sanyou Medical. It trades about -0.01 of its potential returns per unit of risk. Shanghai Sanyou Medical is currently generating about -0.13 per unit of risk. If you would invest 1,423 in Highbroad Advanced Material on November 3, 2024 and sell it today you would lose (22.00) from holding Highbroad Advanced Material or give up 1.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Highbroad Advanced Material vs. Shanghai Sanyou Medical
Performance |
| Timeline |
| Highbroad Advanced |
| Shanghai Sanyou Medical |
Highbroad Advanced and Shanghai Sanyou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highbroad Advanced and Shanghai Sanyou
The main advantage of trading using opposite Highbroad Advanced and Shanghai Sanyou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highbroad Advanced position performs unexpectedly, Shanghai Sanyou 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 Sanyou will offset losses from the drop in Shanghai Sanyou's long position.| Highbroad Advanced vs. Nanjing Putian Telecommunications | Highbroad Advanced vs. Cloud Live Technology | Highbroad Advanced vs. Shenzhen Coship Electronics | Highbroad Advanced vs. Shenzhen Hifuture Electric |
| Shanghai Sanyou vs. Industrial and Commercial | Shanghai Sanyou vs. China Construction Bank | Shanghai Sanyou vs. Agricultural Bank of | Shanghai Sanyou vs. Bank of China |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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