Correlation Between China Asset and Shanghai CEO
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By analyzing existing cross correlation between China Asset Management and Shanghai CEO Environmental, you can compare the effects of market volatilities on China Asset and Shanghai CEO 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 China Asset with a short position of Shanghai CEO. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Shanghai CEO.
Diversification Opportunities for China Asset and Shanghai CEO
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Shanghai is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management and Shanghai CEO Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai CEO Environ and China Asset 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 China Asset Management are associated (or correlated) with Shanghai CEO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai CEO Environ has no effect on the direction of China Asset i.e., China Asset and Shanghai CEO go up and down completely randomly.
Pair Corralation between China Asset and Shanghai CEO
Assuming the 90 days trading horizon China Asset is expected to generate 22.39 times less return on investment than Shanghai CEO. But when comparing it to its historical volatility, China Asset Management is 53.35 times less risky than Shanghai CEO. It trades about 0.09 of its potential returns per unit of risk. Shanghai CEO Environmental is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,287 in Shanghai CEO Environmental on October 13, 2024 and sell it today you would lose (1,491) from holding Shanghai CEO Environmental or give up 65.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. Shanghai CEO Environmental
Performance |
| Timeline |
| China Asset Management |
| Shanghai CEO Environ |
China Asset and Shanghai CEO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and Shanghai CEO
The main advantage of trading using opposite China Asset and Shanghai CEO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset position performs unexpectedly, Shanghai CEO 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 CEO will offset losses from the drop in Shanghai CEO's long position.| China Asset vs. Qiaoyin Environmental Tech | China Asset vs. Dawning Information Industry | China Asset vs. ButOne Information Corp | China Asset vs. Tongxing Environmental Protection |
| Shanghai CEO vs. Beijing Mainstreets Investment | Shanghai CEO vs. Tsingtao Brewery Co | Shanghai CEO vs. PKU HealthCare Corp | Shanghai CEO vs. China Asset Management |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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