Correlation Between Shanghai Xinhua and Shanxi Lanhua
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Xinhua Media and Shanxi Lanhua Sci Tech, you can compare the effects of market volatilities on Shanghai Xinhua and Shanxi Lanhua 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 Shanxi Lanhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Xinhua and Shanxi Lanhua.
Diversification Opportunities for Shanghai Xinhua and Shanxi Lanhua
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Shanxi is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Xinhua Media and Shanxi Lanhua Sci Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanxi Lanhua Sci 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 Shanxi Lanhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanxi Lanhua Sci has no effect on the direction of Shanghai Xinhua i.e., Shanghai Xinhua and Shanxi Lanhua go up and down completely randomly.
Pair Corralation between Shanghai Xinhua and Shanxi Lanhua
Assuming the 90 days trading horizon Shanghai Xinhua Media is expected to generate 1.69 times more return on investment than Shanxi Lanhua. However, Shanghai Xinhua is 1.69 times more volatile than Shanxi Lanhua Sci Tech. It trades about 0.05 of its potential returns per unit of risk. Shanxi Lanhua Sci Tech is currently generating about 0.0 per unit of risk. If you would invest 380.00 in Shanghai Xinhua Media on September 2, 2024 and sell it today you would earn a total of 245.00 from holding Shanghai Xinhua Media or generate 64.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Xinhua Media vs. Shanxi Lanhua Sci Tech
Performance |
| Timeline |
| Shanghai Xinhua Media |
| Shanxi Lanhua Sci |
Shanghai Xinhua and Shanxi Lanhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Xinhua and Shanxi Lanhua
The main advantage of trading using opposite Shanghai Xinhua and Shanxi Lanhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Xinhua position performs unexpectedly, Shanxi Lanhua 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 Shanxi Lanhua will offset losses from the drop in Shanxi Lanhua's 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 |
| Shanxi Lanhua vs. Bloomage Biotechnology Corp | Shanxi Lanhua vs. Xinjiang Communications Construction | Shanxi Lanhua vs. Guangdong Advertising Co | Shanxi Lanhua vs. Changchun BCHT Biotechnology |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |