Correlation Between China World and Shanghai Yaoji
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By analyzing existing cross correlation between China World Trade and Shanghai Yaoji Playing, you can compare the effects of market volatilities on China World and Shanghai Yaoji 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 China World with a short position of Shanghai Yaoji. Check out your portfolio center. Please also check ongoing floating volatility patterns of China World and Shanghai Yaoji.
Diversification Opportunities for China World and Shanghai Yaoji
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Shanghai is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding China World Trade and Shanghai Yaoji Playing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yaoji Playing and China World 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 China World Trade are associated (or correlated) with Shanghai Yaoji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yaoji Playing has no effect on the direction of China World i.e., China World and Shanghai Yaoji go up and down completely randomly.
Pair Corralation between China World and Shanghai Yaoji
Assuming the 90 days trading horizon China World is expected to generate 1.22 times less return on investment than Shanghai Yaoji. But when comparing it to its historical volatility, China World Trade is 1.94 times less risky than Shanghai Yaoji. It trades about 0.04 of its potential returns per unit of risk. Shanghai Yaoji Playing is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3,091 in Shanghai Yaoji Playing on September 12, 2024 and sell it today you would earn a total of 220.00 from holding Shanghai Yaoji Playing or generate 7.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China World Trade vs. Shanghai Yaoji Playing
Performance |
| Timeline |
| China World Trade |
| Shanghai Yaoji Playing |
China World and Shanghai Yaoji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China World and Shanghai Yaoji
The main advantage of trading using opposite China World and Shanghai Yaoji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China World position performs unexpectedly, Shanghai Yaoji 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 Yaoji will offset losses from the drop in Shanghai Yaoji's long position.| China World vs. Industrial and Commercial | China World vs. China Construction Bank | China World vs. Bank of China | China World vs. Agricultural Bank of |
| Shanghai Yaoji vs. China Satellite Communications | Shanghai Yaoji vs. By health | Shanghai Yaoji vs. Yunnan Jianzhijia Health Chain | Shanghai Yaoji vs. China World Trade |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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