Correlation Between Baoshan Iron and Shanghai Broadband
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By analyzing existing cross correlation between Baoshan Iron Steel and Shanghai Broadband Technology, you can compare the effects of market volatilities on Baoshan Iron and Shanghai Broadband 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 Baoshan Iron with a short position of Shanghai Broadband. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baoshan Iron and Shanghai Broadband.
Diversification Opportunities for Baoshan Iron and Shanghai Broadband
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Baoshan and Shanghai is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Baoshan Iron Steel and Shanghai Broadband Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Broadband and Baoshan Iron 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 Baoshan Iron Steel are associated (or correlated) with Shanghai Broadband. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Broadband has no effect on the direction of Baoshan Iron i.e., Baoshan Iron and Shanghai Broadband go up and down completely randomly.
Pair Corralation between Baoshan Iron and Shanghai Broadband
Assuming the 90 days trading horizon Baoshan Iron Steel is expected to under-perform the Shanghai Broadband. But the stock apears to be less risky and, when comparing its historical volatility, Baoshan Iron Steel is 2.34 times less risky than Shanghai Broadband. The stock trades about -0.29 of its potential returns per unit of risk. The Shanghai Broadband Technology is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 350.00 in Shanghai Broadband Technology on October 26, 2024 and sell it today you would lose (28.00) from holding Shanghai Broadband Technology or give up 8.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baoshan Iron Steel vs. Shanghai Broadband Technology
Performance |
| Timeline |
| Baoshan Iron Steel |
| Shanghai Broadband |
Baoshan Iron and Shanghai Broadband Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baoshan Iron and Shanghai Broadband
The main advantage of trading using opposite Baoshan Iron and Shanghai Broadband positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baoshan Iron position performs unexpectedly, Shanghai Broadband 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 Broadband will offset losses from the drop in Shanghai Broadband's long position.| Baoshan Iron vs. Tianjin Ruixin Technology | Baoshan Iron vs. Queclink Wireless Solutions | Baoshan Iron vs. Hubei Forbon Technology | Baoshan Iron vs. StarPower Semiconductor |
| Shanghai Broadband vs. Zijin Mining Group | Shanghai Broadband vs. Wanhua Chemical Group | Shanghai Broadband vs. Baoshan Iron Steel | Shanghai Broadband vs. Shandong Gold Mining |
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 CEOs Directory module to screen CEOs from public companies around the world.
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