Correlation Between Shanghai Construction and Sungrow Power
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By analyzing existing cross correlation between Shanghai Construction Group and Sungrow Power Supply, you can compare the effects of market volatilities on Shanghai Construction and Sungrow Power 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 Shanghai Construction with a short position of Sungrow Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Construction and Sungrow Power.
Diversification Opportunities for Shanghai Construction and Sungrow Power
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shanghai and Sungrow is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Construction Group and Sungrow Power Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sungrow Power Supply and Shanghai Construction 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 Shanghai Construction Group are associated (or correlated) with Sungrow Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sungrow Power Supply has no effect on the direction of Shanghai Construction i.e., Shanghai Construction and Sungrow Power go up and down completely randomly.
Pair Corralation between Shanghai Construction and Sungrow Power
Assuming the 90 days trading horizon Shanghai Construction Group is expected to generate 1.35 times more return on investment than Sungrow Power. However, Shanghai Construction is 1.35 times more volatile than Sungrow Power Supply. It trades about 0.17 of its potential returns per unit of risk. Sungrow Power Supply is currently generating about -0.19 per unit of risk. If you would invest 264.00 in Shanghai Construction Group on September 13, 2024 and sell it today you would earn a total of 32.00 from holding Shanghai Construction Group or generate 12.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Construction Group vs. Sungrow Power Supply
Performance |
| Timeline |
| Shanghai Construction |
| Sungrow Power Supply |
Shanghai Construction and Sungrow Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Construction and Sungrow Power
The main advantage of trading using opposite Shanghai Construction and Sungrow Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Construction position performs unexpectedly, Sungrow Power 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 Sungrow Power will offset losses from the drop in Sungrow Power's long position.| Shanghai Construction vs. Ming Yang Smart | Shanghai Construction vs. 159681 | Shanghai Construction vs. 159005 | Shanghai Construction vs. Loctek Ergonomic Technology |
| Sungrow Power vs. Cultural Investment Holdings | Sungrow Power vs. Jiangsu Yueda Investment | Sungrow Power vs. Linzhou Heavy Machinery | Sungrow Power vs. Shanghai Construction 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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