Correlation Between Shanghai Jinfeng and Hang Xiao
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By analyzing existing cross correlation between Shanghai Jinfeng Wine and Hang Xiao Steel, you can compare the effects of market volatilities on Shanghai Jinfeng and Hang Xiao 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 Jinfeng with a short position of Hang Xiao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Jinfeng and Hang Xiao.
Diversification Opportunities for Shanghai Jinfeng and Hang Xiao
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Hang is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Jinfeng Wine and Hang Xiao Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hang Xiao Steel and Shanghai Jinfeng 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 Jinfeng Wine are associated (or correlated) with Hang Xiao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hang Xiao Steel has no effect on the direction of Shanghai Jinfeng i.e., Shanghai Jinfeng and Hang Xiao go up and down completely randomly.
Pair Corralation between Shanghai Jinfeng and Hang Xiao
Assuming the 90 days trading horizon Shanghai Jinfeng Wine is expected to generate 1.22 times more return on investment than Hang Xiao. However, Shanghai Jinfeng is 1.22 times more volatile than Hang Xiao Steel. It trades about 0.02 of its potential returns per unit of risk. Hang Xiao Steel is currently generating about 0.0 per unit of risk. If you would invest 641.00 in Shanghai Jinfeng Wine on September 12, 2024 and sell it today you would earn a total of 20.00 from holding Shanghai Jinfeng Wine or generate 3.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Jinfeng Wine vs. Hang Xiao Steel
Performance |
| Timeline |
| Shanghai Jinfeng Wine |
| Hang Xiao Steel |
Shanghai Jinfeng and Hang Xiao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Jinfeng and Hang Xiao
The main advantage of trading using opposite Shanghai Jinfeng and Hang Xiao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Jinfeng position performs unexpectedly, Hang Xiao 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 Hang Xiao will offset losses from the drop in Hang Xiao's long position.| Shanghai Jinfeng vs. China Petroleum Chemical | Shanghai Jinfeng vs. PetroChina Co Ltd | Shanghai Jinfeng vs. China State Construction | Shanghai Jinfeng vs. China Railway Group |
| Hang Xiao vs. Agricultural Bank of | Hang Xiao vs. Industrial and Commercial | Hang Xiao vs. Bank of China | Hang Xiao vs. PetroChina Co Ltd |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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