Correlation Between Chengdu B and Shanghai Suochen
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By analyzing existing cross correlation between Chengdu B ray Media and Shanghai Suochen Information, you can compare the effects of market volatilities on Chengdu B and Shanghai Suochen 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 Chengdu B with a short position of Shanghai Suochen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu B and Shanghai Suochen.
Diversification Opportunities for Chengdu B and Shanghai Suochen
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Chengdu and Shanghai is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu B ray Media and Shanghai Suochen Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Suochen Inf and Chengdu B 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 Chengdu B ray Media are associated (or correlated) with Shanghai Suochen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Suochen Inf has no effect on the direction of Chengdu B i.e., Chengdu B and Shanghai Suochen go up and down completely randomly.
Pair Corralation between Chengdu B and Shanghai Suochen
Assuming the 90 days trading horizon Chengdu B ray Media is expected to under-perform the Shanghai Suochen. In addition to that, Chengdu B is 1.52 times more volatile than Shanghai Suochen Information. It trades about -0.24 of its total potential returns per unit of risk. Shanghai Suochen Information is currently generating about -0.19 per unit of volatility. If you would invest 6,720 in Shanghai Suochen Information on October 14, 2024 and sell it today you would lose (947.00) from holding Shanghai Suochen Information or give up 14.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu B ray Media vs. Shanghai Suochen Information
Performance |
| Timeline |
| Chengdu B ray |
| Shanghai Suochen Inf |
Chengdu B and Shanghai Suochen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu B and Shanghai Suochen
The main advantage of trading using opposite Chengdu B and Shanghai Suochen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu B position performs unexpectedly, Shanghai Suochen 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 Shanghai Suochen will offset losses from the drop in Shanghai Suochen's long position.| Chengdu B vs. Haima Automobile Group | Chengdu B vs. SSAW Hotels Resorts | Chengdu B vs. Everjoy Health Group | Chengdu B vs. Lotus Health Group |
| Shanghai Suochen vs. Tongyu Communication | Shanghai Suochen vs. Chengdu B ray Media | Shanghai Suochen vs. Sportsoul Co Ltd | Shanghai Suochen vs. GUOMAI Culture Media |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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