Correlation Between Shanghai Shibei and Hangzhou Pinming
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By analyzing existing cross correlation between Shanghai Shibei Hi Tech and Hangzhou Pinming Software, you can compare the effects of market volatilities on Shanghai Shibei and Hangzhou Pinming 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 Hangzhou Pinming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shibei and Hangzhou Pinming.
Diversification Opportunities for Shanghai Shibei and Hangzhou Pinming
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Hangzhou is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shibei Hi Tech and Hangzhou Pinming Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Pinming Software 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 Hangzhou Pinming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Pinming Software has no effect on the direction of Shanghai Shibei i.e., Shanghai Shibei and Hangzhou Pinming go up and down completely randomly.
Pair Corralation between Shanghai Shibei and Hangzhou Pinming
Assuming the 90 days trading horizon Shanghai Shibei Hi Tech is expected to under-perform the Hangzhou Pinming. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Shibei Hi Tech is 1.32 times less risky than Hangzhou Pinming. The stock trades about -0.2 of its potential returns per unit of risk. The Hangzhou Pinming Software is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,565 in Hangzhou Pinming Software on October 30, 2024 and sell it today you would earn a total of 1.00 from holding Hangzhou Pinming Software or generate 0.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Shibei Hi Tech vs. Hangzhou Pinming Software
Performance |
| Timeline |
| Shanghai Shibei Hi |
| Hangzhou Pinming Software |
Shanghai Shibei and Hangzhou Pinming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Shibei and Hangzhou Pinming
The main advantage of trading using opposite Shanghai Shibei and Hangzhou Pinming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shibei position performs unexpectedly, Hangzhou Pinming 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 Hangzhou Pinming will offset losses from the drop in Hangzhou Pinming's long position.| Shanghai Shibei vs. Agricultural Bank of | Shanghai Shibei vs. Industrial and Commercial | Shanghai Shibei vs. Bank of China | Shanghai Shibei vs. China Construction Bank |
| Hangzhou Pinming vs. Yindu Kitchen Equipment | Hangzhou Pinming vs. Zhejiang Publishing Media | Hangzhou Pinming vs. Changjiang Publishing Media | Hangzhou Pinming vs. Shandong Publishing Media |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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