Correlation Between Shanghai Construction and Beijing Roborock
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By analyzing existing cross correlation between Shanghai Construction Group and Beijing Roborock Technology, you can compare the effects of market volatilities on Shanghai Construction and Beijing Roborock 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 Beijing Roborock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Construction and Beijing Roborock.
Diversification Opportunities for Shanghai Construction and Beijing Roborock
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shanghai and Beijing is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Construction Group and Beijing Roborock Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Roborock Tec 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 Beijing Roborock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Roborock Tec has no effect on the direction of Shanghai Construction i.e., Shanghai Construction and Beijing Roborock go up and down completely randomly.
Pair Corralation between Shanghai Construction and Beijing Roborock
Assuming the 90 days trading horizon Shanghai Construction is expected to generate 3.24 times less return on investment than Beijing Roborock. But when comparing it to its historical volatility, Shanghai Construction Group is 2.09 times less risky than Beijing Roborock. It trades about 0.01 of its potential returns per unit of risk. Beijing Roborock Technology is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 19,238 in Beijing Roborock Technology on September 28, 2024 and sell it today you would earn a total of 1,762 from holding Beijing Roborock Technology or generate 9.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Construction Group vs. Beijing Roborock Technology
Performance |
| Timeline |
| Shanghai Construction |
| Beijing Roborock Tec |
Shanghai Construction and Beijing Roborock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Construction and Beijing Roborock
The main advantage of trading using opposite Shanghai Construction and Beijing Roborock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Construction position performs unexpectedly, Beijing Roborock 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 Beijing Roborock will offset losses from the drop in Beijing Roborock's long position.| Shanghai Construction vs. Ming Yang Smart | Shanghai Construction vs. 159681 | Shanghai Construction vs. 159005 | Shanghai Construction vs. Loctek Ergonomic Technology |
| Beijing Roborock vs. Qijing Machinery | Beijing Roborock vs. Ningbo Construction Co | Beijing Roborock vs. Allied Machinery Co | Beijing Roborock 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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