Correlation Between Shanghai Broadband and Yili Chuanning
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By analyzing existing cross correlation between Shanghai Broadband Technology and Yili Chuanning Biotechnology, you can compare the effects of market volatilities on Shanghai Broadband and Yili Chuanning 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 Yili Chuanning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Broadband and Yili Chuanning.
Diversification Opportunities for Shanghai Broadband and Yili Chuanning
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shanghai and Yili is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Broadband Technology and Yili Chuanning Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yili Chuanning Biote 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 Yili Chuanning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yili Chuanning Biote has no effect on the direction of Shanghai Broadband i.e., Shanghai Broadband and Yili Chuanning go up and down completely randomly.
Pair Corralation between Shanghai Broadband and Yili Chuanning
Assuming the 90 days trading horizon Shanghai Broadband Technology is expected to generate 1.84 times more return on investment than Yili Chuanning. However, Shanghai Broadband is 1.84 times more volatile than Yili Chuanning Biotechnology. It trades about 0.04 of its potential returns per unit of risk. Yili Chuanning Biotechnology is currently generating about 0.06 per unit of risk. If you would invest 302.00 in Shanghai Broadband Technology on November 5, 2024 and sell it today you would earn a total of 4.00 from holding Shanghai Broadband Technology or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Broadband Technology vs. Yili Chuanning Biotechnology
Performance |
| Timeline |
| Shanghai Broadband |
| Yili Chuanning Biote |
Shanghai Broadband and Yili Chuanning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Broadband and Yili Chuanning
The main advantage of trading using opposite Shanghai Broadband and Yili Chuanning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Broadband position performs unexpectedly, Yili Chuanning 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 Yili Chuanning will offset losses from the drop in Yili Chuanning's long position.| Shanghai Broadband vs. Zijin Mining Group | Shanghai Broadband vs. Wanhua Chemical Group | Shanghai Broadband vs. Baoshan Iron Steel | Shanghai Broadband vs. Shandong Gold Mining |
| Yili Chuanning vs. Kweichow Moutai Co | Yili Chuanning vs. G bits Network Technology | Yili Chuanning vs. Anhui Gujing Distillery | Yili Chuanning vs. Anhui Gujing Distillery |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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