Correlation Between Saurer Intelligent and Shanghai Pudong
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By analyzing existing cross correlation between Saurer Intelligent Technology and Shanghai Pudong Development, you can compare the effects of market volatilities on Saurer Intelligent and Shanghai Pudong 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 Saurer Intelligent with a short position of Shanghai Pudong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saurer Intelligent and Shanghai Pudong.
Diversification Opportunities for Saurer Intelligent and Shanghai Pudong
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Saurer and Shanghai is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Saurer Intelligent Technology and Shanghai Pudong Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Pudong Deve and Saurer Intelligent 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 Saurer Intelligent Technology are associated (or correlated) with Shanghai Pudong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Pudong Deve has no effect on the direction of Saurer Intelligent i.e., Saurer Intelligent and Shanghai Pudong go up and down completely randomly.
Pair Corralation between Saurer Intelligent and Shanghai Pudong
Assuming the 90 days trading horizon Saurer Intelligent Technology is expected to generate 1.96 times more return on investment than Shanghai Pudong. However, Saurer Intelligent is 1.96 times more volatile than Shanghai Pudong Development. It trades about 0.25 of its potential returns per unit of risk. Shanghai Pudong Development is currently generating about 0.08 per unit of risk. If you would invest 131.00 in Saurer Intelligent Technology on August 29, 2024 and sell it today you would earn a total of 89.00 from holding Saurer Intelligent Technology or generate 67.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saurer Intelligent Technology vs. Shanghai Pudong Development
Performance |
| Timeline |
| Saurer Intelligent |
| Shanghai Pudong Deve |
Saurer Intelligent and Shanghai Pudong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saurer Intelligent and Shanghai Pudong
The main advantage of trading using opposite Saurer Intelligent and Shanghai Pudong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saurer Intelligent position performs unexpectedly, Shanghai Pudong 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 Pudong will offset losses from the drop in Shanghai Pudong's long position.| Saurer Intelligent vs. Bank of Suzhou | Saurer Intelligent vs. Shenwu Energy Saving | Saurer Intelligent vs. Qilu Bank Co | Saurer Intelligent vs. Changjiang Jinggong Steel |
| Shanghai Pudong vs. Hang Xiao Steel | Shanghai Pudong vs. Gansu Jiu Steel | Shanghai Pudong vs. Tianjin Capital Environmental | Shanghai Pudong vs. Eit Environmental Development |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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