Correlation Between Shandong Homey and China Express
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By analyzing existing cross correlation between Shandong Homey Aquatic and China Express Airlines, you can compare the effects of market volatilities on Shandong Homey and China Express 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 Shandong Homey with a short position of China Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Homey and China Express.
Diversification Opportunities for Shandong Homey and China Express
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shandong and China is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Homey Aquatic and China Express Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Express Airlines and Shandong Homey 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 Shandong Homey Aquatic are associated (or correlated) with China Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Express Airlines has no effect on the direction of Shandong Homey i.e., Shandong Homey and China Express go up and down completely randomly.
Pair Corralation between Shandong Homey and China Express
Assuming the 90 days trading horizon Shandong Homey Aquatic is expected to generate 0.95 times more return on investment than China Express. However, Shandong Homey Aquatic is 1.05 times less risky than China Express. It trades about 0.01 of its potential returns per unit of risk. China Express Airlines is currently generating about -0.03 per unit of risk. If you would invest 266.00 in Shandong Homey Aquatic on September 5, 2024 and sell it today you would lose (5.00) from holding Shandong Homey Aquatic or give up 1.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Homey Aquatic vs. China Express Airlines
Performance |
| Timeline |
| Shandong Homey Aquatic |
| China Express Airlines |
Shandong Homey and China Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Homey and China Express
The main advantage of trading using opposite Shandong Homey and China Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Homey position performs unexpectedly, China Express 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 China Express will offset losses from the drop in China Express' long position.| Shandong Homey vs. Poly Real Estate | Shandong Homey vs. China Vanke Co | Shandong Homey vs. China Merchants Shekou | Shandong Homey vs. Huafa Industrial Co |
| China Express vs. Agricultural Bank of | China Express vs. Industrial and Commercial | China Express vs. Bank of China | China Express 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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