Correlation Between Gansu Yasheng and Shanghai Metersbonwe
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By analyzing existing cross correlation between Gansu Yasheng Industrial and Shanghai Metersbonwe FashionAccessories, you can compare the effects of market volatilities on Gansu Yasheng 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 Gansu Yasheng with a short position of Shanghai Metersbonwe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Yasheng and Shanghai Metersbonwe.
Diversification Opportunities for Gansu Yasheng and Shanghai Metersbonwe
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gansu and Shanghai is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Yasheng Industrial and Shanghai Metersbonwe FashionAc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Metersbonwe and Gansu Yasheng 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 Gansu Yasheng Industrial 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 Gansu Yasheng i.e., Gansu Yasheng and Shanghai Metersbonwe go up and down completely randomly.
Pair Corralation between Gansu Yasheng and Shanghai Metersbonwe
Assuming the 90 days trading horizon Gansu Yasheng is expected to generate 2.8 times less return on investment than Shanghai Metersbonwe. But when comparing it to its historical volatility, Gansu Yasheng Industrial is 1.66 times less risky than Shanghai Metersbonwe. It trades about 0.03 of its potential returns per unit of risk. Shanghai Metersbonwe FashionAccessories is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 186.00 in Shanghai Metersbonwe FashionAccessories on September 4, 2024 and sell it today you would earn a total of 58.00 from holding Shanghai Metersbonwe FashionAccessories or generate 31.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Yasheng Industrial vs. Shanghai Metersbonwe FashionAc
Performance |
| Timeline |
| Gansu Yasheng Industrial |
| Shanghai Metersbonwe |
Gansu Yasheng and Shanghai Metersbonwe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Yasheng and Shanghai Metersbonwe
The main advantage of trading using opposite Gansu Yasheng and Shanghai Metersbonwe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Yasheng 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.| Gansu Yasheng vs. Sanbo Hospital Management | Gansu Yasheng vs. Huatian Hotel Group | Gansu Yasheng vs. Andon Health Co | Gansu Yasheng vs. Yunnan Jianzhijia Health Chain |
| Shanghai Metersbonwe vs. Contec Medical Systems | Shanghai Metersbonwe vs. Cowealth Medical China | Shanghai Metersbonwe vs. Maider Medical Industry | Shanghai Metersbonwe vs. Western Superconducting Tech |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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