Correlation Between Shanghai Shibei and Suzhou Mingzhi
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By analyzing existing cross correlation between Shanghai Shibei Hi Tech and Suzhou Mingzhi Technology, you can compare the effects of market volatilities on Shanghai Shibei and Suzhou Mingzhi 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 Suzhou Mingzhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shibei and Suzhou Mingzhi.
Diversification Opportunities for Shanghai Shibei and Suzhou Mingzhi
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Suzhou is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shibei Hi Tech and Suzhou Mingzhi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Mingzhi Technology 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 Suzhou Mingzhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Mingzhi Technology has no effect on the direction of Shanghai Shibei i.e., Shanghai Shibei and Suzhou Mingzhi go up and down completely randomly.
Pair Corralation between Shanghai Shibei and Suzhou Mingzhi
Assuming the 90 days trading horizon Shanghai Shibei is expected to generate 1.1 times less return on investment than Suzhou Mingzhi. In addition to that, Shanghai Shibei is 1.08 times more volatile than Suzhou Mingzhi Technology. It trades about 0.09 of its total potential returns per unit of risk. Suzhou Mingzhi Technology is currently generating about 0.11 per unit of volatility. If you would invest 1,319 in Suzhou Mingzhi Technology on October 18, 2024 and sell it today you would earn a total of 404.00 from holding Suzhou Mingzhi Technology or generate 30.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Shibei Hi Tech vs. Suzhou Mingzhi Technology
Performance |
| Timeline |
| Shanghai Shibei Hi |
| Suzhou Mingzhi Technology |
Shanghai Shibei and Suzhou Mingzhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Shibei and Suzhou Mingzhi
The main advantage of trading using opposite Shanghai Shibei and Suzhou Mingzhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shibei position performs unexpectedly, Suzhou Mingzhi 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 Suzhou Mingzhi will offset losses from the drop in Suzhou Mingzhi's long position.| Shanghai Shibei vs. Ming Yang Smart | Shanghai Shibei vs. 159681 | Shanghai Shibei vs. 159005 | Shanghai Shibei vs. Loctek Ergonomic Technology |
| Suzhou Mingzhi vs. Shanghai Shibei Hi Tech | Suzhou Mingzhi vs. State Grid InformationCommunication | Suzhou Mingzhi vs. Jonjee Hi tech Industrial | Suzhou Mingzhi vs. XiaMen HongXin Electron 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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