Correlation Between Shanghai Pudong and Rongcheer Industrial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Pudong Development and Rongcheer Industrial Technology, you can compare the effects of market volatilities on Shanghai Pudong and Rongcheer Industrial 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 Rongcheer Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Pudong and Rongcheer Industrial.
Diversification Opportunities for Shanghai Pudong and Rongcheer Industrial
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Rongcheer is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Pudong Development and Rongcheer Industrial Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rongcheer Industrial 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 Rongcheer Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rongcheer Industrial has no effect on the direction of Shanghai Pudong i.e., Shanghai Pudong and Rongcheer Industrial go up and down completely randomly.
Pair Corralation between Shanghai Pudong and Rongcheer Industrial
Assuming the 90 days trading horizon Shanghai Pudong Development is expected to generate 0.29 times more return on investment than Rongcheer Industrial. However, Shanghai Pudong Development is 3.48 times less risky than Rongcheer Industrial. It trades about 0.07 of its potential returns per unit of risk. Rongcheer Industrial Technology is currently generating about -0.01 per unit of risk. If you would invest 723.00 in Shanghai Pudong Development on September 1, 2024 and sell it today you would earn a total of 223.00 from holding Shanghai Pudong Development or generate 30.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Shanghai Pudong Development vs. Rongcheer Industrial Technolog
Performance |
| Timeline |
| Shanghai Pudong Deve |
| Rongcheer Industrial |
Shanghai Pudong and Rongcheer Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Pudong and Rongcheer Industrial
The main advantage of trading using opposite Shanghai Pudong and Rongcheer Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Pudong position performs unexpectedly, Rongcheer Industrial 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 Rongcheer Industrial will offset losses from the drop in Rongcheer Industrial's 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 |
| Rongcheer Industrial vs. New China Life | Rongcheer Industrial vs. Ming Yang Smart | Rongcheer Industrial vs. 159681 | Rongcheer Industrial vs. 159005 |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |