Correlation Between Shanghai Broadband and China Publishing
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By analyzing existing cross correlation between Shanghai Broadband Technology and China Publishing Media, you can compare the effects of market volatilities on Shanghai Broadband and China Publishing 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 China Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Broadband and China Publishing.
Diversification Opportunities for Shanghai Broadband and China Publishing
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and China is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Broadband Technology and China Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Publishing Media 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 China Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Publishing Media has no effect on the direction of Shanghai Broadband i.e., Shanghai Broadband and China Publishing go up and down completely randomly.
Pair Corralation between Shanghai Broadband and China Publishing
Assuming the 90 days trading horizon Shanghai Broadband Technology is expected to generate 1.84 times more return on investment than China Publishing. However, Shanghai Broadband is 1.84 times more volatile than China Publishing Media. It trades about -0.24 of its potential returns per unit of risk. China Publishing Media is currently generating about -0.59 per unit of risk. If you would invest 385.00 in Shanghai Broadband Technology on October 12, 2024 and sell it today you would lose (68.00) from holding Shanghai Broadband Technology or give up 17.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Broadband Technology vs. China Publishing Media
Performance |
| Timeline |
| Shanghai Broadband |
| China Publishing Media |
Shanghai Broadband and China Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Broadband and China Publishing
The main advantage of trading using opposite Shanghai Broadband and China Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Broadband position performs unexpectedly, China Publishing 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 China Publishing will offset losses from the drop in China Publishing's long position.| Shanghai Broadband vs. Soyea Technology Co | Shanghai Broadband vs. Dazhong Transportation Group | Shanghai Broadband vs. Eastroc Beverage Group | Shanghai Broadband vs. Smartgiant Technology Co |
| China Publishing vs. Shanghai Broadband Technology | China Publishing vs. Fujian Longzhou Transportation | China Publishing vs. Road Environment Technology | China Publishing vs. Zhengping RoadBridge Constr |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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