Correlation Between Shanghai Pudong and Liaoning Port
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By analyzing existing cross correlation between Shanghai Pudong Development and Liaoning Port Co, you can compare the effects of market volatilities on Shanghai Pudong and Liaoning 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 Liaoning Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Pudong and Liaoning Port.
Diversification Opportunities for Shanghai Pudong and Liaoning Port
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Liaoning is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Pudong Development and Liaoning Port Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liaoning Port 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 Liaoning Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liaoning Port has no effect on the direction of Shanghai Pudong i.e., Shanghai Pudong and Liaoning Port go up and down completely randomly.
Pair Corralation between Shanghai Pudong and Liaoning Port
Assuming the 90 days trading horizon Shanghai Pudong Development is expected to under-perform the Liaoning Port. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Pudong Development is 1.51 times less risky than Liaoning Port. The stock trades about -0.15 of its potential returns per unit of risk. The Liaoning Port Co is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 148.00 in Liaoning Port Co on August 30, 2024 and sell it today you would earn a total of 10.00 from holding Liaoning Port Co or generate 6.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Pudong Development vs. Liaoning Port Co
Performance |
| Timeline |
| Shanghai Pudong Deve |
| Liaoning Port |
Shanghai Pudong and Liaoning Port Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Pudong and Liaoning Port
The main advantage of trading using opposite Shanghai Pudong and Liaoning Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Pudong position performs unexpectedly, Liaoning 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 Liaoning Port will offset losses from the drop in Liaoning Port's long position.| Shanghai Pudong vs. Shanghai Broadband Technology | Shanghai Pudong vs. Broadex Technologies Co | Shanghai Pudong vs. Fujian Longzhou Transportation | Shanghai Pudong vs. Zhongshan Broad Ocean Motor |
| Liaoning Port vs. Chengdu Kanghua Biological | Liaoning Port vs. Beijing Wantai Biological | Liaoning Port vs. Suzhou Novoprotein Scientific | Liaoning Port vs. Aluminum Corp of |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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