Correlation Between Shanghai Zhangjiang and Hubei Radio
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By analyzing existing cross correlation between Shanghai Zhangjiang Hi Tech and Hubei Radio and, you can compare the effects of market volatilities on Shanghai Zhangjiang and Hubei Radio 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 Zhangjiang with a short position of Hubei Radio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Zhangjiang and Hubei Radio.
Diversification Opportunities for Shanghai Zhangjiang and Hubei Radio
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Hubei is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Zhangjiang Hi Tech and Hubei Radio and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Radio and Shanghai Zhangjiang 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 Zhangjiang Hi Tech are associated (or correlated) with Hubei Radio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Radio has no effect on the direction of Shanghai Zhangjiang i.e., Shanghai Zhangjiang and Hubei Radio go up and down completely randomly.
Pair Corralation between Shanghai Zhangjiang and Hubei Radio
Assuming the 90 days trading horizon Shanghai Zhangjiang Hi Tech is expected to generate 1.39 times more return on investment than Hubei Radio. However, Shanghai Zhangjiang is 1.39 times more volatile than Hubei Radio and. It trades about 0.09 of its potential returns per unit of risk. Hubei Radio and is currently generating about -0.04 per unit of risk. If you would invest 2,607 in Shanghai Zhangjiang Hi Tech on August 31, 2024 and sell it today you would earn a total of 202.00 from holding Shanghai Zhangjiang Hi Tech or generate 7.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Zhangjiang Hi Tech vs. Hubei Radio and
Performance |
| Timeline |
| Shanghai Zhangjiang |
| Hubei Radio |
Shanghai Zhangjiang and Hubei Radio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Zhangjiang and Hubei Radio
The main advantage of trading using opposite Shanghai Zhangjiang and Hubei Radio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Zhangjiang position performs unexpectedly, Hubei Radio 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 Hubei Radio will offset losses from the drop in Hubei Radio's long position.| Shanghai Zhangjiang vs. Guangzhou KingTeller Technology | Shanghai Zhangjiang vs. Linewell Software Co | Shanghai Zhangjiang vs. Jonjee Hi tech Industrial | Shanghai Zhangjiang vs. Keli Sensing Technology |
| Hubei Radio vs. Fiberhome Telecommunication Technologies | Hubei Radio vs. Will Semiconductor Co | Hubei Radio vs. Guangdong Shenglu Telecommunication | Hubei Radio vs. Southchip Semiconductor Technology |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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