Correlation Between Shanghai Pudong and Tangshan Port
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By analyzing existing cross correlation between Shanghai Pudong Development and Tangshan Port Group, you can compare the effects of market volatilities on Shanghai Pudong and Tangshan Port 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 Tangshan Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Pudong and Tangshan Port.
Diversification Opportunities for Shanghai Pudong and Tangshan Port
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shanghai and Tangshan is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Pudong Development and Tangshan Port Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tangshan Port Group 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 Tangshan Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tangshan Port Group has no effect on the direction of Shanghai Pudong i.e., Shanghai Pudong and Tangshan Port go up and down completely randomly.
Pair Corralation between Shanghai Pudong and Tangshan Port
Assuming the 90 days trading horizon Shanghai Pudong Development is expected to under-perform the Tangshan Port. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Pudong Development is 1.14 times less risky than Tangshan Port. The stock trades about -0.03 of its potential returns per unit of risk. The Tangshan Port Group is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 435.00 in Tangshan Port Group on September 12, 2024 and sell it today you would earn a total of 16.00 from holding Tangshan Port Group or generate 3.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Pudong Development vs. Tangshan Port Group
Performance |
| Timeline |
| Shanghai Pudong Deve |
| Tangshan Port Group |
Shanghai Pudong and Tangshan Port Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Pudong and Tangshan Port
The main advantage of trading using opposite Shanghai Pudong and Tangshan Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Pudong position performs unexpectedly, Tangshan Port 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 Tangshan Port will offset losses from the drop in Tangshan Port's long position.| Shanghai Pudong vs. Jinhui Liquor Co | Shanghai Pudong vs. Nanjing OLO Home | Shanghai Pudong vs. Shandong Homey Aquatic | Shanghai Pudong vs. Caihong Display Devices |
| Tangshan Port vs. Beijing SPC Environment | Tangshan Port vs. Gansu Jiu Steel | Tangshan Port vs. Shanghai Broadband Technology | Tangshan Port vs. Silkroad Visual 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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