Correlation Between Shanghai Pudong and Qi An
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By analyzing existing cross correlation between Shanghai Pudong Development and Qi An Xin, you can compare the effects of market volatilities on Shanghai Pudong and Qi An 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 Qi An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Pudong and Qi An.
Diversification Opportunities for Shanghai Pudong and Qi An
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shanghai and 688561 is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Pudong Development and Qi An Xin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qi An Xin 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 Qi An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qi An Xin has no effect on the direction of Shanghai Pudong i.e., Shanghai Pudong and Qi An go up and down completely randomly.
Pair Corralation between Shanghai Pudong and Qi An
Assuming the 90 days trading horizon Shanghai Pudong Development is expected to generate 0.39 times more return on investment than Qi An. However, Shanghai Pudong Development is 2.57 times less risky than Qi An. It trades about 0.08 of its potential returns per unit of risk. Qi An Xin is currently generating about -0.03 per unit of risk. If you would invest 687.00 in Shanghai Pudong Development on November 19, 2024 and sell it today you would earn a total of 354.00 from holding Shanghai Pudong Development or generate 51.53% 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. Qi An Xin
Performance |
| Timeline |
| Shanghai Pudong Deve |
| Qi An Xin |
Shanghai Pudong and Qi An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Pudong and Qi An
The main advantage of trading using opposite Shanghai Pudong and Qi An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Pudong position performs unexpectedly, Qi An 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 Qi An will offset losses from the drop in Qi An's long position.| Shanghai Pudong vs. Jiajia Food Group | Shanghai Pudong vs. Maxvision Technology Corp | Shanghai Pudong vs. Dhc Software Co | Shanghai Pudong vs. New Hope Dairy |
| Qi An vs. Huasi Agricultural Development | Qi An vs. Hunan Tyen Machinery | Qi An vs. Hongrun Construction Group | Qi An vs. Gansu Huangtai Wine marketing |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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