Correlation Between Long Yuan and Shanghai Action
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By analyzing existing cross correlation between Long Yuan Construction and Shanghai Action Education, you can compare the effects of market volatilities on Long Yuan 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 Long Yuan with a short position of Shanghai Action. Check out your portfolio center. Please also check ongoing floating volatility patterns of Long Yuan and Shanghai Action.
Diversification Opportunities for Long Yuan and Shanghai Action
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Long and Shanghai is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Long Yuan Construction 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 Long Yuan 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 Long Yuan Construction 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 Long Yuan i.e., Long Yuan and Shanghai Action go up and down completely randomly.
Pair Corralation between Long Yuan and Shanghai Action
Assuming the 90 days trading horizon Long Yuan Construction is expected to under-perform the Shanghai Action. In addition to that, Long Yuan is 1.48 times more volatile than Shanghai Action Education. It trades about -0.04 of its total potential returns per unit of risk. Shanghai Action Education is currently generating about 0.13 per unit of volatility. If you would invest 3,383 in Shanghai Action Education on October 25, 2024 and sell it today you would earn a total of 162.00 from holding Shanghai Action Education or generate 4.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Long Yuan Construction vs. Shanghai Action Education
Performance |
| Timeline |
| Long Yuan Construction |
| Shanghai Action Education |
Long Yuan and Shanghai Action Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Long Yuan and Shanghai Action
The main advantage of trading using opposite Long Yuan and Shanghai Action positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Long Yuan 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.| Long Yuan vs. Shanghai Material Trading | Long Yuan vs. Vanfund Urban Investment | Long Yuan vs. Jiangsu Yueda Investment | Long Yuan vs. Henan Shuanghui Investment |
| Shanghai Action vs. PetroChina Co Ltd | Shanghai Action vs. Gansu Jiu Steel | Shanghai Action vs. Ming Yang Smart | Shanghai Action vs. Aba Chemicals Corp |
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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