Correlation Between Shanghai Pudong and Broadex Technologies
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Pudong Development and Broadex Technologies Co, you can compare the effects of market volatilities on Shanghai Pudong and Broadex Technologies 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 Broadex Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Pudong and Broadex Technologies.
Diversification Opportunities for Shanghai Pudong and Broadex Technologies
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Broadex is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Pudong Development and Broadex Technologies Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broadex Technologies 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 Broadex Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broadex Technologies has no effect on the direction of Shanghai Pudong i.e., Shanghai Pudong and Broadex Technologies go up and down completely randomly.
Pair Corralation between Shanghai Pudong and Broadex Technologies
Assuming the 90 days trading horizon Shanghai Pudong Development is expected to generate 0.48 times more return on investment than Broadex Technologies. However, Shanghai Pudong Development is 2.08 times less risky than Broadex Technologies. It trades about -0.1 of its potential returns per unit of risk. Broadex Technologies Co is currently generating about -0.19 per unit of risk. If you would invest 984.00 in Shanghai Pudong Development on September 1, 2024 and sell it today you would lose (38.00) from holding Shanghai Pudong Development or give up 3.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shanghai Pudong Development vs. Broadex Technologies Co
Performance |
| Timeline |
| Shanghai Pudong Deve |
| Broadex Technologies |
Shanghai Pudong and Broadex Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Pudong and Broadex Technologies
The main advantage of trading using opposite Shanghai Pudong and Broadex Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Pudong position performs unexpectedly, Broadex Technologies 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 Broadex Technologies will offset losses from the drop in Broadex Technologies' long position.| Shanghai Pudong vs. Dymatic Chemicals | Shanghai Pudong vs. Air China Ltd | Shanghai Pudong vs. Shenzhen Centralcon Investment | Shanghai Pudong vs. Ningxia Younglight Chemicals |
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.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |