Correlation Between Shanghai Xinhua and Do Fluoride
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By analyzing existing cross correlation between Shanghai Xinhua Media and Do Fluoride Chemicals Co, you can compare the effects of market volatilities on Shanghai Xinhua and Do Fluoride 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 Do Fluoride. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Xinhua and Do Fluoride.
Diversification Opportunities for Shanghai Xinhua and Do Fluoride
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and 002407 is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Xinhua Media and Do Fluoride Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Do Fluoride Chemicals 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 Do Fluoride. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Do Fluoride Chemicals has no effect on the direction of Shanghai Xinhua i.e., Shanghai Xinhua and Do Fluoride go up and down completely randomly.
Pair Corralation between Shanghai Xinhua and Do Fluoride
Assuming the 90 days trading horizon Shanghai Xinhua Media is expected to generate 2.28 times more return on investment than Do Fluoride. However, Shanghai Xinhua is 2.28 times more volatile than Do Fluoride Chemicals Co. It trades about 0.01 of its potential returns per unit of risk. Do Fluoride Chemicals Co is currently generating about -0.28 per unit of risk. If you would invest 605.00 in Shanghai Xinhua Media on October 26, 2024 and sell it today you would lose (8.00) from holding Shanghai Xinhua Media or give up 1.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Xinhua Media vs. Do Fluoride Chemicals Co
Performance |
| Timeline |
| Shanghai Xinhua Media |
| Do Fluoride Chemicals |
Shanghai Xinhua and Do Fluoride Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Xinhua and Do Fluoride
The main advantage of trading using opposite Shanghai Xinhua and Do Fluoride positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Xinhua position performs unexpectedly, Do Fluoride 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 Do Fluoride will offset losses from the drop in Do Fluoride's long position.| Shanghai Xinhua vs. Bus Online Co | Shanghai Xinhua vs. Holitech Technology Co | Shanghai Xinhua vs. Gome Telecom Equipment | Shanghai Xinhua vs. Cultural Investment Holdings |
| Do Fluoride vs. Guangdong Jinma Entertainment | Do Fluoride vs. Xiangyang Automobile Bearing | Do Fluoride vs. Shanghai Xinhua Media | Do Fluoride vs. Southern PublishingMedia Co |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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