Correlation Between Chinese Universe and Shanghai Action
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By analyzing existing cross correlation between Chinese Universe Publishing and Shanghai Action Education, you can compare the effects of market volatilities on Chinese Universe 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 Chinese Universe with a short position of Shanghai Action. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Universe and Shanghai Action.
Diversification Opportunities for Chinese Universe and Shanghai Action
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chinese and Shanghai is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Universe Publishing 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 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 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 Chinese Universe i.e., Chinese Universe and Shanghai Action go up and down completely randomly.
Pair Corralation between Chinese Universe and Shanghai Action
Assuming the 90 days trading horizon Chinese Universe Publishing is expected to under-perform the Shanghai Action. But the stock apears to be less risky and, when comparing its historical volatility, Chinese Universe Publishing is 1.07 times less risky than Shanghai Action. The stock trades about -0.2 of its potential returns per unit of risk. The Shanghai Action Education is currently generating about -0.18 of returns per unit of risk over similar time horizon. If you would invest 4,090 in Shanghai Action Education on August 30, 2024 and sell it today you would lose (784.00) from holding Shanghai Action Education or give up 19.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chinese Universe Publishing vs. Shanghai Action Education
Performance |
| Timeline |
| Chinese Universe Pub |
| Shanghai Action Education |
Chinese Universe and Shanghai Action Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chinese Universe and Shanghai Action
The main advantage of trading using opposite Chinese Universe and Shanghai Action positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Universe 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.| Chinese Universe vs. Xiamen Jihong Package | Chinese Universe vs. Eastroc Beverage Group | Chinese Universe vs. Xinjiang Tianrun Dairy | Chinese Universe vs. Ligao Foods CoLtd |
| Shanghai Action vs. Biwin Storage Technology | Shanghai Action vs. PetroChina Co Ltd | Shanghai Action vs. Industrial and Commercial | Shanghai Action vs. China Construction Bank |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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