Correlation Between Shanghai Broadband and Caihong Display
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By analyzing existing cross correlation between Shanghai Broadband Technology and Caihong Display Devices, you can compare the effects of market volatilities on Shanghai Broadband and Caihong Display 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 Caihong Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Broadband and Caihong Display.
Diversification Opportunities for Shanghai Broadband and Caihong Display
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shanghai and Caihong is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Broadband Technology and Caihong Display Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caihong Display Devices 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 Caihong Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caihong Display Devices has no effect on the direction of Shanghai Broadband i.e., Shanghai Broadband and Caihong Display go up and down completely randomly.
Pair Corralation between Shanghai Broadband and Caihong Display
Assuming the 90 days trading horizon Shanghai Broadband is expected to generate 6.9 times less return on investment than Caihong Display. In addition to that, Shanghai Broadband is 1.07 times more volatile than Caihong Display Devices. It trades about 0.01 of its total potential returns per unit of risk. Caihong Display Devices is currently generating about 0.06 per unit of volatility. If you would invest 617.00 in Caihong Display Devices on November 3, 2024 and sell it today you would earn a total of 231.00 from holding Caihong Display Devices or generate 37.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Broadband Technology vs. Caihong Display Devices
Performance |
| Timeline |
| Shanghai Broadband |
| Caihong Display Devices |
Shanghai Broadband and Caihong Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Broadband and Caihong Display
The main advantage of trading using opposite Shanghai Broadband and Caihong Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Broadband position performs unexpectedly, Caihong Display 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 Caihong Display will offset losses from the drop in Caihong Display's long position.| Shanghai Broadband vs. Invengo Information Technology | Shanghai Broadband vs. Hangzhou Gisway Information | Shanghai Broadband vs. Bonree Data Technology | Shanghai Broadband vs. Chengdu B ray Media |
| Caihong Display vs. Ningbo Ligong Online | Caihong Display vs. Shenzhen Bioeasy Biotechnology | Caihong Display vs. Hytera Communications Corp | Caihong Display vs. Shanghai Rightongene Biotechnology |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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