Correlation Between Shanghai Zhangjiang and Sichuan Jinshi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Zhangjiang Hi Tech and Sichuan Jinshi Technology, you can compare the effects of market volatilities on Shanghai Zhangjiang and Sichuan Jinshi 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 Sichuan Jinshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Zhangjiang and Sichuan Jinshi.
Diversification Opportunities for Shanghai Zhangjiang and Sichuan Jinshi
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Sichuan is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Zhangjiang Hi Tech and Sichuan Jinshi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jinshi Technology 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 Sichuan Jinshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jinshi Technology has no effect on the direction of Shanghai Zhangjiang i.e., Shanghai Zhangjiang and Sichuan Jinshi go up and down completely randomly.
Pair Corralation between Shanghai Zhangjiang and Sichuan Jinshi
Assuming the 90 days trading horizon Shanghai Zhangjiang Hi Tech is expected to generate 1.84 times more return on investment than Sichuan Jinshi. However, Shanghai Zhangjiang is 1.84 times more volatile than Sichuan Jinshi Technology. It trades about 0.09 of its potential returns per unit of risk. Sichuan Jinshi Technology is currently generating about 0.14 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. Sichuan Jinshi Technology
Performance |
| Timeline |
| Shanghai Zhangjiang |
| Sichuan Jinshi Technology |
Shanghai Zhangjiang and Sichuan Jinshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Zhangjiang and Sichuan Jinshi
The main advantage of trading using opposite Shanghai Zhangjiang and Sichuan Jinshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Zhangjiang position performs unexpectedly, Sichuan Jinshi 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 Sichuan Jinshi will offset losses from the drop in Sichuan Jinshi'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 |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |