Correlation Between Shandong Publishing and China Merchants
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By analyzing existing cross correlation between Shandong Publishing Media and China Merchants Shekou, you can compare the effects of market volatilities on Shandong Publishing and China Merchants 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 China Merchants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Publishing and China Merchants.
Diversification Opportunities for Shandong Publishing and China Merchants
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shandong and China is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Publishing Media and China Merchants Shekou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Merchants Shekou 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 China Merchants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Merchants Shekou has no effect on the direction of Shandong Publishing i.e., Shandong Publishing and China Merchants go up and down completely randomly.
Pair Corralation between Shandong Publishing and China Merchants
Assuming the 90 days trading horizon Shandong Publishing Media is expected to under-perform the China Merchants. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Publishing Media is 1.34 times less risky than China Merchants. The stock trades about -0.4 of its potential returns per unit of risk. The China Merchants Shekou is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 965.00 in China Merchants Shekou on December 4, 2024 and sell it today you would earn a total of 35.00 from holding China Merchants Shekou or generate 3.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Shandong Publishing Media vs. China Merchants Shekou
Performance |
| Timeline |
| Shandong Publishing Media |
| China Merchants Shekou |
Shandong Publishing and China Merchants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Publishing and China Merchants
The main advantage of trading using opposite Shandong Publishing and China Merchants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Publishing position performs unexpectedly, China Merchants 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 China Merchants will offset losses from the drop in China Merchants' long position.| Shandong Publishing vs. Fujian Longzhou Transportation | Shandong Publishing vs. Guilin Seamild Foods | Shandong Publishing vs. Springsnow Food Group | Shandong Publishing vs. Shuhua Sports Co |
| China Merchants vs. Zhejiang Qianjiang Motorcycle | China Merchants vs. Daoming OpticsChemical Co | China Merchants vs. Porton Fine Chemicals | China Merchants vs. Jinsanjiang Silicon Material |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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