Correlation Between Shanghai Broadband and AUPU Home
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By analyzing existing cross correlation between Shanghai Broadband Technology and AUPU Home Style, you can compare the effects of market volatilities on Shanghai Broadband and AUPU Home 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 AUPU Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Broadband and AUPU Home.
Diversification Opportunities for Shanghai Broadband and AUPU Home
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and AUPU is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Broadband Technology and AUPU Home Style in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUPU Home Style 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 AUPU Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AUPU Home Style has no effect on the direction of Shanghai Broadband i.e., Shanghai Broadband and AUPU Home go up and down completely randomly.
Pair Corralation between Shanghai Broadband and AUPU Home
Assuming the 90 days trading horizon Shanghai Broadband Technology is expected to under-perform the AUPU Home. In addition to that, Shanghai Broadband is 1.06 times more volatile than AUPU Home Style. It trades about -0.02 of its total potential returns per unit of risk. AUPU Home Style is currently generating about 0.01 per unit of volatility. If you would invest 1,064 in AUPU Home Style on October 27, 2024 and sell it today you would lose (3.00) from holding AUPU Home Style or give up 0.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Broadband Technology vs. AUPU Home Style
Performance |
| Timeline |
| Shanghai Broadband |
| AUPU Home Style |
Shanghai Broadband and AUPU Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Broadband and AUPU Home
The main advantage of trading using opposite Shanghai Broadband and AUPU Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Broadband position performs unexpectedly, AUPU Home 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 AUPU Home will offset losses from the drop in AUPU Home'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 |
| AUPU Home vs. Qtone Education Group | AUPU Home vs. Gan Yuan Foods | AUPU Home vs. Guilin Seamild Foods | AUPU Home vs. Sanbo Hospital Management |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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