Correlation Between Shanghai Shibei and Guangdong Silvere
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By analyzing existing cross correlation between Shanghai Shibei Hi Tech and Guangdong Silvere Sci, you can compare the effects of market volatilities on Shanghai Shibei and Guangdong Silvere 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 Shanghai Shibei with a short position of Guangdong Silvere. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shibei and Guangdong Silvere.
Diversification Opportunities for Shanghai Shibei and Guangdong Silvere
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Guangdong is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shibei Hi Tech and Guangdong Silvere Sci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Silvere Sci and Shanghai Shibei 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 Shanghai Shibei Hi Tech are associated (or correlated) with Guangdong Silvere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Silvere Sci has no effect on the direction of Shanghai Shibei i.e., Shanghai Shibei and Guangdong Silvere go up and down completely randomly.
Pair Corralation between Shanghai Shibei and Guangdong Silvere
Assuming the 90 days trading horizon Shanghai Shibei Hi Tech is expected to under-perform the Guangdong Silvere. In addition to that, Shanghai Shibei is 1.15 times more volatile than Guangdong Silvere Sci. It trades about -0.38 of its total potential returns per unit of risk. Guangdong Silvere Sci is currently generating about -0.23 per unit of volatility. If you would invest 668.00 in Guangdong Silvere Sci on October 17, 2024 and sell it today you would lose (110.00) from holding Guangdong Silvere Sci or give up 16.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Shibei Hi Tech vs. Guangdong Silvere Sci
Performance |
| Timeline |
| Shanghai Shibei Hi |
| Guangdong Silvere Sci |
Shanghai Shibei and Guangdong Silvere Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Shibei and Guangdong Silvere
The main advantage of trading using opposite Shanghai Shibei and Guangdong Silvere positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shibei position performs unexpectedly, Guangdong Silvere 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 Guangdong Silvere will offset losses from the drop in Guangdong Silvere's long position.| Shanghai Shibei vs. Ming Yang Smart | Shanghai Shibei vs. 159681 | Shanghai Shibei vs. 159005 | Shanghai Shibei vs. Loctek Ergonomic Technology |
| Guangdong Silvere vs. Sichuan Jinshi Technology | Guangdong Silvere vs. FSPG Hi Tech Co | Guangdong Silvere vs. Guangdong Shenglu Telecommunication | Guangdong Silvere vs. Shanghai Shibei Hi Tech |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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