Correlation Between Shanghai Broadband and Beijing Roborock
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By analyzing existing cross correlation between Shanghai Broadband Technology and Beijing Roborock Technology, you can compare the effects of market volatilities on Shanghai Broadband and Beijing Roborock 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 Beijing Roborock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Broadband and Beijing Roborock.
Diversification Opportunities for Shanghai Broadband and Beijing Roborock
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shanghai and Beijing is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Broadband Technology and Beijing Roborock Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Roborock Tec 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 Beijing Roborock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Roborock Tec has no effect on the direction of Shanghai Broadband i.e., Shanghai Broadband and Beijing Roborock go up and down completely randomly.
Pair Corralation between Shanghai Broadband and Beijing Roborock
Assuming the 90 days trading horizon Shanghai Broadband Technology is expected to under-perform the Beijing Roborock. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Broadband Technology is 1.41 times less risky than Beijing Roborock. The stock trades about 0.0 of its potential returns per unit of risk. The Beijing Roborock Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 25,328 in Beijing Roborock Technology on September 1, 2024 and sell it today you would lose (3,878) from holding Beijing Roborock Technology or give up 15.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Broadband Technology vs. Beijing Roborock Technology
Performance |
| Timeline |
| Shanghai Broadband |
| Beijing Roborock Tec |
Shanghai Broadband and Beijing Roborock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Broadband and Beijing Roborock
The main advantage of trading using opposite Shanghai Broadband and Beijing Roborock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Broadband position performs unexpectedly, Beijing Roborock 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 Beijing Roborock will offset losses from the drop in Beijing Roborock'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 |
| Beijing Roborock vs. CIMC Vehicles Co | Beijing Roborock vs. Guangzhou Jointas Chemical | Beijing Roborock vs. Sichuan Fulin Transportation | Beijing Roborock vs. China Sports Industry |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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