Correlation Between ButOne Information and Shanghai Electric
Specify exactly 2 symbols:
By analyzing existing cross correlation between ButOne Information Corp and Shanghai Electric Group, you can compare the effects of market volatilities on ButOne Information and Shanghai Electric 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 ButOne Information with a short position of Shanghai Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of ButOne Information and Shanghai Electric.
Diversification Opportunities for ButOne Information and Shanghai Electric
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ButOne and Shanghai is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding ButOne Information Corp and Shanghai Electric Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Electric and ButOne Information 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 ButOne Information Corp are associated (or correlated) with Shanghai Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Electric has no effect on the direction of ButOne Information i.e., ButOne Information and Shanghai Electric go up and down completely randomly.
Pair Corralation between ButOne Information and Shanghai Electric
Assuming the 90 days trading horizon ButOne Information Corp is expected to generate 0.46 times more return on investment than Shanghai Electric. However, ButOne Information Corp is 2.18 times less risky than Shanghai Electric. It trades about 0.18 of its potential returns per unit of risk. Shanghai Electric Group is currently generating about -0.12 per unit of risk. If you would invest 2,287 in ButOne Information Corp on September 13, 2024 and sell it today you would earn a total of 216.00 from holding ButOne Information Corp or generate 9.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ButOne Information Corp vs. Shanghai Electric Group
Performance |
| Timeline |
| ButOne Information Corp |
| Shanghai Electric |
ButOne Information and Shanghai Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ButOne Information and Shanghai Electric
The main advantage of trading using opposite ButOne Information and Shanghai Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ButOne Information position performs unexpectedly, Shanghai Electric 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 Electric will offset losses from the drop in Shanghai Electric's long position.| ButOne Information vs. China State Construction | ButOne Information vs. Poly Real Estate | ButOne Information vs. China Vanke Co | ButOne Information vs. China Merchants Shekou |
| Shanghai Electric vs. Lootom Telcovideo Network | Shanghai Electric vs. Zhejiang Yayi Metal | Shanghai Electric vs. Rising Nonferrous Metals | Shanghai Electric vs. Tianshan Aluminum 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world |