Correlation Between Shanghai Xinhua and Dalian Zeus
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By analyzing existing cross correlation between Shanghai Xinhua Media and Dalian Zeus Entertainment, you can compare the effects of market volatilities on Shanghai Xinhua and Dalian Zeus 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 Xinhua with a short position of Dalian Zeus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Xinhua and Dalian Zeus.
Diversification Opportunities for Shanghai Xinhua and Dalian Zeus
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Dalian is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Xinhua Media and Dalian Zeus Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalian Zeus Entertainment and Shanghai Xinhua 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 Xinhua Media are associated (or correlated) with Dalian Zeus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalian Zeus Entertainment has no effect on the direction of Shanghai Xinhua i.e., Shanghai Xinhua and Dalian Zeus go up and down completely randomly.
Pair Corralation between Shanghai Xinhua and Dalian Zeus
Assuming the 90 days trading horizon Shanghai Xinhua Media is expected to under-perform the Dalian Zeus. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Xinhua Media is 1.46 times less risky than Dalian Zeus. The stock trades about 0.0 of its potential returns per unit of risk. The Dalian Zeus Entertainment is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 349.00 in Dalian Zeus Entertainment on September 2, 2024 and sell it today you would earn a total of 141.00 from holding Dalian Zeus Entertainment or generate 40.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Xinhua Media vs. Dalian Zeus Entertainment
Performance |
| Timeline |
| Shanghai Xinhua Media |
| Dalian Zeus Entertainment |
Shanghai Xinhua and Dalian Zeus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Xinhua and Dalian Zeus
The main advantage of trading using opposite Shanghai Xinhua and Dalian Zeus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Xinhua position performs unexpectedly, Dalian Zeus 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 Dalian Zeus will offset losses from the drop in Dalian Zeus' long position.| Shanghai Xinhua vs. China Everbright Bank | Shanghai Xinhua vs. Lianhe Chemical Technology | Shanghai Xinhua vs. Xilong Chemical Co | Shanghai Xinhua vs. Nancal Energy Saving Tech |
| Dalian Zeus vs. Shenzhen MYS Environmental | Dalian Zeus vs. AVIC Fund Management | Dalian Zeus vs. Penghua Shenzhen Energy | Dalian Zeus vs. Jizhong Energy Resources |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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