Correlation Between Shanghai Material and Southern PublishingMedia
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By analyzing existing cross correlation between Shanghai Material Trading and Southern PublishingMedia Co, you can compare the effects of market volatilities on Shanghai Material and Southern PublishingMedia 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 Material with a short position of Southern PublishingMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Material and Southern PublishingMedia.
Diversification Opportunities for Shanghai Material and Southern PublishingMedia
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shanghai and Southern is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Material Trading and Southern PublishingMedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern PublishingMedia and Shanghai Material 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 Material Trading are associated (or correlated) with Southern PublishingMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern PublishingMedia has no effect on the direction of Shanghai Material i.e., Shanghai Material and Southern PublishingMedia go up and down completely randomly.
Pair Corralation between Shanghai Material and Southern PublishingMedia
Assuming the 90 days trading horizon Shanghai Material is expected to generate 1.79 times less return on investment than Southern PublishingMedia. In addition to that, Shanghai Material is 1.21 times more volatile than Southern PublishingMedia Co. It trades about 0.05 of its total potential returns per unit of risk. Southern PublishingMedia Co is currently generating about 0.11 per unit of volatility. If you would invest 1,144 in Southern PublishingMedia Co on November 3, 2024 and sell it today you would earn a total of 468.00 from holding Southern PublishingMedia Co or generate 40.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Material Trading vs. Southern PublishingMedia Co
Performance |
| Timeline |
| Shanghai Material Trading |
| Southern PublishingMedia |
Shanghai Material and Southern PublishingMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Material and Southern PublishingMedia
The main advantage of trading using opposite Shanghai Material and Southern PublishingMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Material position performs unexpectedly, Southern PublishingMedia 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 Southern PublishingMedia will offset losses from the drop in Southern PublishingMedia's long position.| Shanghai Material vs. Industrial and Commercial | Shanghai Material vs. Kweichow Moutai Co | Shanghai Material vs. Agricultural Bank of | Shanghai Material vs. China Mobile Limited |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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