Correlation Between Shanghai Pudong and Weihai Honglin
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Pudong Development and Weihai Honglin Electronic, you can compare the effects of market volatilities on Shanghai Pudong and Weihai Honglin 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 Weihai Honglin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Pudong and Weihai Honglin.
Diversification Opportunities for Shanghai Pudong and Weihai Honglin
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Weihai is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Pudong Development and Weihai Honglin Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weihai Honglin Electronic 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 Weihai Honglin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weihai Honglin Electronic has no effect on the direction of Shanghai Pudong i.e., Shanghai Pudong and Weihai Honglin go up and down completely randomly.
Pair Corralation between Shanghai Pudong and Weihai Honglin
Assuming the 90 days trading horizon Shanghai Pudong Development is expected to generate 0.75 times more return on investment than Weihai Honglin. However, Shanghai Pudong Development is 1.33 times less risky than Weihai Honglin. It trades about -0.22 of its potential returns per unit of risk. Weihai Honglin Electronic is currently generating about -0.18 per unit of risk. If you would invest 1,006 in Shanghai Pudong Development on August 29, 2024 and sell it today you would lose (75.00) from holding Shanghai Pudong Development or give up 7.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Pudong Development vs. Weihai Honglin Electronic
Performance |
| Timeline |
| Shanghai Pudong Deve |
| Weihai Honglin Electronic |
Shanghai Pudong and Weihai Honglin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Pudong and Weihai Honglin
The main advantage of trading using opposite Shanghai Pudong and Weihai Honglin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Pudong position performs unexpectedly, Weihai Honglin 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 Weihai Honglin will offset losses from the drop in Weihai Honglin's long position.| Shanghai Pudong vs. Jiaozuo Wanfang Aluminum | Shanghai Pudong vs. Rising Nonferrous Metals | Shanghai Pudong vs. Zhongyin Babi Food | Shanghai Pudong vs. Xinjiang Tianrun Dairy |
| Weihai Honglin vs. Kweichow Moutai Co | Weihai Honglin vs. Shenzhen Mindray Bio Medical | Weihai Honglin vs. Jiangsu Pacific Quartz | Weihai Honglin vs. G bits Network Technology |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |