Correlation Between Hua Xia and Shanghai Metersbonwe
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By analyzing existing cross correlation between Hua Xia Bank and Shanghai Metersbonwe FashionAccessories, you can compare the effects of market volatilities on Hua Xia and Shanghai Metersbonwe 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 Hua Xia with a short position of Shanghai Metersbonwe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hua Xia and Shanghai Metersbonwe.
Diversification Opportunities for Hua Xia and Shanghai Metersbonwe
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hua and Shanghai is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Hua Xia Bank and Shanghai Metersbonwe FashionAc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Metersbonwe and Hua Xia 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 Hua Xia Bank are associated (or correlated) with Shanghai Metersbonwe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Metersbonwe has no effect on the direction of Hua Xia i.e., Hua Xia and Shanghai Metersbonwe go up and down completely randomly.
Pair Corralation between Hua Xia and Shanghai Metersbonwe
Assuming the 90 days trading horizon Hua Xia is expected to generate 3.32 times less return on investment than Shanghai Metersbonwe. But when comparing it to its historical volatility, Hua Xia Bank is 3.33 times less risky than Shanghai Metersbonwe. It trades about 0.24 of its potential returns per unit of risk. Shanghai Metersbonwe FashionAccessories is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 195.00 in Shanghai Metersbonwe FashionAccessories on September 13, 2024 and sell it today you would earn a total of 63.00 from holding Shanghai Metersbonwe FashionAccessories or generate 32.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hua Xia Bank vs. Shanghai Metersbonwe FashionAc
Performance |
| Timeline |
| Hua Xia Bank |
| Shanghai Metersbonwe |
Hua Xia and Shanghai Metersbonwe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hua Xia and Shanghai Metersbonwe
The main advantage of trading using opposite Hua Xia and Shanghai Metersbonwe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hua Xia position performs unexpectedly, Shanghai Metersbonwe 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 Metersbonwe will offset losses from the drop in Shanghai Metersbonwe's long position.| Hua Xia vs. Dymatic Chemicals | Hua Xia vs. Bomesc Offshore Engineering | Hua Xia vs. North Huajin Chemical | Hua Xia vs. Changjiang Publishing Media |
| Shanghai Metersbonwe vs. Industrial and Commercial | Shanghai Metersbonwe vs. Agricultural Bank of | Shanghai Metersbonwe vs. China Construction Bank | Shanghai Metersbonwe vs. Bank of China |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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