Correlation Between Shanghai Xinhua and Bright Real
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By analyzing existing cross correlation between Shanghai Xinhua Media and Bright Real Estate, you can compare the effects of market volatilities on Shanghai Xinhua and Bright Real 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 Bright Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Xinhua and Bright Real.
Diversification Opportunities for Shanghai Xinhua and Bright Real
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Bright is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Xinhua Media and Bright Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bright Real Estate 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 Bright Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bright Real Estate has no effect on the direction of Shanghai Xinhua i.e., Shanghai Xinhua and Bright Real go up and down completely randomly.
Pair Corralation between Shanghai Xinhua and Bright Real
Assuming the 90 days trading horizon Shanghai Xinhua is expected to generate 1.86 times less return on investment than Bright Real. But when comparing it to its historical volatility, Shanghai Xinhua Media is 1.18 times less risky than Bright Real. It trades about 0.2 of its potential returns per unit of risk. Bright Real Estate is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 299.00 in Bright Real Estate on September 5, 2024 and sell it today you would earn a total of 131.00 from holding Bright Real Estate or generate 43.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Xinhua Media vs. Bright Real Estate
Performance |
| Timeline |
| Shanghai Xinhua Media |
| Bright Real Estate |
Shanghai Xinhua and Bright Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Xinhua and Bright Real
The main advantage of trading using opposite Shanghai Xinhua and Bright Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Xinhua position performs unexpectedly, Bright Real 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 Bright Real will offset losses from the drop in Bright Real's long position.| Shanghai Xinhua vs. Jiangsu Phoenix Publishing | Shanghai Xinhua vs. Zhejiang Publishing Media | Shanghai Xinhua vs. Inspur Software Co | Shanghai Xinhua vs. Beijing Kaiwen Education |
| Bright Real vs. 360 Security Technology | Bright Real vs. Harbin Hatou Investment | Bright Real vs. Shenzhen Centralcon Investment | Bright Real vs. Linewell Software 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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