Correlation Between Tsinghuatongfang and Shanghai Action
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By analyzing existing cross correlation between Tsinghuatongfang Co and Shanghai Action Education, you can compare the effects of market volatilities on Tsinghuatongfang and Shanghai Action 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 Tsinghuatongfang with a short position of Shanghai Action. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsinghuatongfang and Shanghai Action.
Diversification Opportunities for Tsinghuatongfang and Shanghai Action
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tsinghuatongfang and Shanghai is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Tsinghuatongfang Co and Shanghai Action Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Action Education and Tsinghuatongfang 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 Tsinghuatongfang Co are associated (or correlated) with Shanghai Action. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Action Education has no effect on the direction of Tsinghuatongfang i.e., Tsinghuatongfang and Shanghai Action go up and down completely randomly.
Pair Corralation between Tsinghuatongfang and Shanghai Action
Assuming the 90 days trading horizon Tsinghuatongfang Co is expected to generate 1.2 times more return on investment than Shanghai Action. However, Tsinghuatongfang is 1.2 times more volatile than Shanghai Action Education. It trades about 0.03 of its potential returns per unit of risk. Shanghai Action Education is currently generating about 0.02 per unit of risk. If you would invest 518.00 in Tsinghuatongfang Co on October 30, 2024 and sell it today you would earn a total of 158.00 from holding Tsinghuatongfang Co or generate 30.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Tsinghuatongfang Co vs. Shanghai Action Education
Performance |
| Timeline |
| Tsinghuatongfang |
| Shanghai Action Education |
Tsinghuatongfang and Shanghai Action Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tsinghuatongfang and Shanghai Action
The main advantage of trading using opposite Tsinghuatongfang and Shanghai Action positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsinghuatongfang position performs unexpectedly, Shanghai Action 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 Action will offset losses from the drop in Shanghai Action's long position.| Tsinghuatongfang vs. Heilongjiang Transport Development | Tsinghuatongfang vs. ZYF Lopsking Aluminum | Tsinghuatongfang vs. Shenzhen SDG Information | Tsinghuatongfang vs. East Money Information |
| Shanghai Action vs. Guangzhou Dongfang Hotel | Shanghai Action vs. Shanghai Yanpu Metal | Shanghai Action vs. Ye Chiu Metal | Shanghai Action vs. Huatian Hotel Group |
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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