Correlation Between Shandong Publishing and Autek China
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By analyzing existing cross correlation between Shandong Publishing Media and Autek China, you can compare the effects of market volatilities on Shandong Publishing and Autek China 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 Autek China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Publishing and Autek China.
Diversification Opportunities for Shandong Publishing and Autek China
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shandong and Autek is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Publishing Media and Autek China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autek China 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 Autek China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autek China has no effect on the direction of Shandong Publishing i.e., Shandong Publishing and Autek China go up and down completely randomly.
Pair Corralation between Shandong Publishing and Autek China
Assuming the 90 days trading horizon Shandong Publishing Media is expected to generate 0.75 times more return on investment than Autek China. However, Shandong Publishing Media is 1.34 times less risky than Autek China. It trades about -0.14 of its potential returns per unit of risk. Autek China is currently generating about -0.29 per unit of risk. If you would invest 1,140 in Shandong Publishing Media on October 25, 2024 and sell it today you would lose (79.00) from holding Shandong Publishing Media or give up 6.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Publishing Media vs. Autek China
Performance |
| Timeline |
| Shandong Publishing Media |
| Autek China |
Shandong Publishing and Autek China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Publishing and Autek China
The main advantage of trading using opposite Shandong Publishing and Autek China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Publishing position performs unexpectedly, Autek China 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 Autek China will offset losses from the drop in Autek China's long position.| Shandong Publishing vs. Industrial and Commercial | Shandong Publishing vs. Agricultural Bank of | Shandong Publishing vs. China Construction Bank | Shandong Publishing vs. Bank of China |
| Autek China vs. Zhongrun Resources Investment | Autek China vs. Shuhua Sports Co | Autek China vs. Caihong Display Devices | Autek China vs. Jointo Energy Investment |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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