Correlation Between Shanghai Pudong and Shanghai Broadband
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By analyzing existing cross correlation between Shanghai Pudong Development and Shanghai Broadband Technology, you can compare the effects of market volatilities on Shanghai Pudong and Shanghai Broadband 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 Shanghai Broadband. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Pudong and Shanghai Broadband.
Diversification Opportunities for Shanghai Pudong and Shanghai Broadband
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shanghai and Shanghai is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Pudong Development and Shanghai Broadband Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Broadband 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 Shanghai Broadband. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Broadband has no effect on the direction of Shanghai Pudong i.e., Shanghai Pudong and Shanghai Broadband go up and down completely randomly.
Pair Corralation between Shanghai Pudong and Shanghai Broadband
Assuming the 90 days trading horizon Shanghai Pudong Development is expected to generate 0.47 times more return on investment than Shanghai Broadband. However, Shanghai Pudong Development is 2.14 times less risky than Shanghai Broadband. It trades about 0.07 of its potential returns per unit of risk. Shanghai Broadband Technology is currently generating about 0.02 per unit of risk. If you would invest 711.00 in Shanghai Pudong Development on September 2, 2024 and sell it today you would earn a total of 235.00 from holding Shanghai Pudong Development or generate 33.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Pudong Development vs. Shanghai Broadband Technology
Performance |
| Timeline |
| Shanghai Pudong Deve |
| Shanghai Broadband |
Shanghai Pudong and Shanghai Broadband Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Pudong and Shanghai Broadband
The main advantage of trading using opposite Shanghai Pudong and Shanghai Broadband positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Pudong position performs unexpectedly, Shanghai Broadband 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 Broadband will offset losses from the drop in Shanghai Broadband's long position.| Shanghai Pudong vs. Hainan Haiqi Transportation | Shanghai Pudong vs. Heilongjiang Transport Development | Shanghai Pudong vs. Broadex Technologies Co | Shanghai Pudong vs. Pengxin International Mining |
| Shanghai Broadband vs. Zijin Mining Group | Shanghai Broadband vs. Wanhua Chemical Group | Shanghai Broadband vs. Baoshan Iron Steel | Shanghai Broadband vs. Shandong Gold Mining |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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