Correlation Between Shanghai Broadband and Suzhou Oriental
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By analyzing existing cross correlation between Shanghai Broadband Technology and Suzhou Oriental Semiconductor, you can compare the effects of market volatilities on Shanghai Broadband and Suzhou Oriental 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 Suzhou Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Broadband and Suzhou Oriental.
Diversification Opportunities for Shanghai Broadband and Suzhou Oriental
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Suzhou is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Broadband Technology and Suzhou Oriental Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Oriental Semi 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 Suzhou Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Oriental Semi has no effect on the direction of Shanghai Broadband i.e., Shanghai Broadband and Suzhou Oriental go up and down completely randomly.
Pair Corralation between Shanghai Broadband and Suzhou Oriental
Assuming the 90 days trading horizon Shanghai Broadband Technology is expected to generate 1.08 times more return on investment than Suzhou Oriental. However, Shanghai Broadband is 1.08 times more volatile than Suzhou Oriental Semiconductor. It trades about -0.12 of its potential returns per unit of risk. Suzhou Oriental Semiconductor is currently generating about -0.25 per unit of risk. If you would invest 350.00 in Shanghai Broadband Technology on October 26, 2024 and sell it today you would lose (28.00) from holding Shanghai Broadband Technology or give up 8.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Broadband Technology vs. Suzhou Oriental Semiconductor
Performance |
| Timeline |
| Shanghai Broadband |
| Suzhou Oriental Semi |
Shanghai Broadband and Suzhou Oriental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Broadband and Suzhou Oriental
The main advantage of trading using opposite Shanghai Broadband and Suzhou Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Broadband position performs unexpectedly, Suzhou Oriental 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 Suzhou Oriental will offset losses from the drop in Suzhou Oriental'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 |
| Suzhou Oriental vs. Jiangsu Broadcasting Cable | Suzhou Oriental vs. Hubeiyichang Transportation Group | Suzhou Oriental vs. Shanghai Broadband Technology | Suzhou Oriental vs. Chengdu Xinzhu RoadBridge |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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