Correlation Between Chinese Universe and Shanghai Metersbonwe
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By analyzing existing cross correlation between Chinese Universe Publishing and Shanghai Metersbonwe FashionAccessories, you can compare the effects of market volatilities on Chinese Universe 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 Chinese Universe with a short position of Shanghai Metersbonwe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Universe and Shanghai Metersbonwe.
Diversification Opportunities for Chinese Universe and Shanghai Metersbonwe
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chinese and Shanghai is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Universe Publishing and Shanghai Metersbonwe FashionAc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Metersbonwe and Chinese Universe 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 Chinese Universe Publishing 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 Chinese Universe i.e., Chinese Universe and Shanghai Metersbonwe go up and down completely randomly.
Pair Corralation between Chinese Universe and Shanghai Metersbonwe
Assuming the 90 days trading horizon Chinese Universe is expected to generate 12.53 times less return on investment than Shanghai Metersbonwe. But when comparing it to its historical volatility, Chinese Universe Publishing is 2.9 times less risky than Shanghai Metersbonwe. It trades about 0.05 of its potential returns per unit of risk. Shanghai Metersbonwe FashionAccessories is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 197.00 in Shanghai Metersbonwe FashionAccessories on September 12, 2024 and sell it today you would earn a total of 56.00 from holding Shanghai Metersbonwe FashionAccessories or generate 28.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chinese Universe Publishing vs. Shanghai Metersbonwe FashionAc
Performance |
| Timeline |
| Chinese Universe Pub |
| Shanghai Metersbonwe |
Chinese Universe and Shanghai Metersbonwe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chinese Universe and Shanghai Metersbonwe
The main advantage of trading using opposite Chinese Universe and Shanghai Metersbonwe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Universe 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.| Chinese Universe vs. Kweichow Moutai Co | Chinese Universe vs. Shenzhen Mindray Bio Medical | Chinese Universe vs. G bits Network Technology | Chinese Universe vs. Beijing Roborock Technology |
| Shanghai Metersbonwe vs. Lutian Machinery Co | Shanghai Metersbonwe vs. PetroChina Co Ltd | Shanghai Metersbonwe vs. Bank of China | Shanghai Metersbonwe vs. Gansu Jiu Steel |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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