Correlation Between Shandong Publishing and Beijing Shunxin
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By analyzing existing cross correlation between Shandong Publishing Media and Beijing Shunxin Agriculture, you can compare the effects of market volatilities on Shandong Publishing and Beijing Shunxin 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 Shandong Publishing with a short position of Beijing Shunxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Publishing and Beijing Shunxin.
Diversification Opportunities for Shandong Publishing and Beijing Shunxin
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and Beijing is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Publishing Media and Beijing Shunxin Agriculture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Shunxin Agri and Shandong Publishing 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 Shandong Publishing Media are associated (or correlated) with Beijing Shunxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Shunxin Agri has no effect on the direction of Shandong Publishing i.e., Shandong Publishing and Beijing Shunxin go up and down completely randomly.
Pair Corralation between Shandong Publishing and Beijing Shunxin
Assuming the 90 days trading horizon Shandong Publishing Media is expected to generate 1.32 times more return on investment than Beijing Shunxin. However, Shandong Publishing is 1.32 times more volatile than Beijing Shunxin Agriculture. It trades about -0.09 of its potential returns per unit of risk. Beijing Shunxin Agriculture is currently generating about -0.17 per unit of risk. If you would invest 1,170 in Shandong Publishing Media on November 4, 2024 and sell it today you would lose (51.00) from holding Shandong Publishing Media or give up 4.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Publishing Media vs. Beijing Shunxin Agriculture
Performance |
| Timeline |
| Shandong Publishing Media |
| Beijing Shunxin Agri |
Shandong Publishing and Beijing Shunxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Publishing and Beijing Shunxin
The main advantage of trading using opposite Shandong Publishing and Beijing Shunxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Publishing position performs unexpectedly, Beijing Shunxin 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 Beijing Shunxin will offset losses from the drop in Beijing Shunxin's long position.| Shandong Publishing vs. Huaxia Fund Management | Shandong Publishing vs. China Life Insurance | Shandong Publishing vs. Sanbo Hospital Management | Shandong Publishing vs. Innovative Medical Management |
| Beijing Shunxin vs. Xinxiang Chemical Fiber | Beijing Shunxin vs. Xilong Chemical Co | Beijing Shunxin vs. Zhongyin Babi Food | Beijing Shunxin vs. Guilin Seamild Foods |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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