Correlation Between Shanghai Pudong and GRG Banking
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By analyzing existing cross correlation between Shanghai Pudong Development and GRG Banking Equipment, you can compare the effects of market volatilities on Shanghai Pudong and GRG Banking 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 Shanghai Pudong with a short position of GRG Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Pudong and GRG Banking.
Diversification Opportunities for Shanghai Pudong and GRG Banking
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shanghai and GRG is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Pudong Development and GRG Banking Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRG Banking Equipment and Shanghai Pudong 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 Shanghai Pudong Development are associated (or correlated) with GRG Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRG Banking Equipment has no effect on the direction of Shanghai Pudong i.e., Shanghai Pudong and GRG Banking go up and down completely randomly.
Pair Corralation between Shanghai Pudong and GRG Banking
Assuming the 90 days trading horizon Shanghai Pudong Development is expected to generate 0.84 times more return on investment than GRG Banking. However, Shanghai Pudong Development is 1.18 times less risky than GRG Banking. It trades about 0.2 of its potential returns per unit of risk. GRG Banking Equipment is currently generating about -0.02 per unit of risk. If you would invest 1,013 in Shanghai Pudong Development on November 3, 2024 and sell it today you would earn a total of 52.00 from holding Shanghai Pudong Development or generate 5.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Pudong Development vs. GRG Banking Equipment
Performance |
| Timeline |
| Shanghai Pudong Deve |
| GRG Banking Equipment |
Shanghai Pudong and GRG Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Pudong and GRG Banking
The main advantage of trading using opposite Shanghai Pudong and GRG Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Pudong position performs unexpectedly, GRG Banking 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 GRG Banking will offset losses from the drop in GRG Banking's long position.| Shanghai Pudong vs. Shandong Longquan Pipeline | Shanghai Pudong vs. China Life Insurance | Shanghai Pudong vs. Dr Peng Telecom | Shanghai Pudong vs. Fujian Newland Computer |
| GRG Banking vs. Marssenger Kitchenware Co | GRG Banking vs. Anji Foodstuff Co | GRG Banking vs. Youyou Foods Co | GRG Banking vs. V V Food |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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