Correlation Between Shanghai Broadband and Jiangxi Hengda
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Broadband Technology and Jiangxi Hengda Hi Tech, you can compare the effects of market volatilities on Shanghai Broadband and Jiangxi Hengda 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 Broadband with a short position of Jiangxi Hengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Broadband and Jiangxi Hengda.
Diversification Opportunities for Shanghai Broadband and Jiangxi Hengda
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Jiangxi is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Broadband Technology and Jiangxi Hengda Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Hengda Hi and Shanghai Broadband 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 Broadband Technology are associated (or correlated) with Jiangxi Hengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Hengda Hi has no effect on the direction of Shanghai Broadband i.e., Shanghai Broadband and Jiangxi Hengda go up and down completely randomly.
Pair Corralation between Shanghai Broadband and Jiangxi Hengda
Assuming the 90 days trading horizon Shanghai Broadband Technology is expected to generate 0.78 times more return on investment than Jiangxi Hengda. However, Shanghai Broadband Technology is 1.29 times less risky than Jiangxi Hengda. It trades about 0.38 of its potential returns per unit of risk. Jiangxi Hengda Hi Tech is currently generating about 0.06 per unit of risk. If you would invest 328.00 in Shanghai Broadband Technology on August 29, 2024 and sell it today you would earn a total of 76.00 from holding Shanghai Broadband Technology or generate 23.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Broadband Technology vs. Jiangxi Hengda Hi Tech
Performance |
| Timeline |
| Shanghai Broadband |
| Jiangxi Hengda Hi |
Shanghai Broadband and Jiangxi Hengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Broadband and Jiangxi Hengda
The main advantage of trading using opposite Shanghai Broadband and Jiangxi Hengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Broadband position performs unexpectedly, Jiangxi Hengda 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 Jiangxi Hengda will offset losses from the drop in Jiangxi Hengda's long position.| Shanghai Broadband vs. Iat Automobile Technology | Shanghai Broadband vs. Haima Automobile Group | Shanghai Broadband vs. Zhongtong Guomai Communication | Shanghai Broadband vs. Anhui Transport Consulting |
| Jiangxi Hengda vs. CareRay Digital Medical | Jiangxi Hengda vs. Sino Medical Sciences | Jiangxi Hengda vs. Hengkang Medical Group | Jiangxi Hengda vs. Jiangsu Jinling Sports |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |