Correlation Between Shandong Publishing and Hangzhou Pinming
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By analyzing existing cross correlation between Shandong Publishing Media and Hangzhou Pinming Software, you can compare the effects of market volatilities on Shandong Publishing and Hangzhou Pinming 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 Hangzhou Pinming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Publishing and Hangzhou Pinming.
Diversification Opportunities for Shandong Publishing and Hangzhou Pinming
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shandong and Hangzhou is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Publishing Media and Hangzhou Pinming Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Pinming Software 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 Hangzhou Pinming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Pinming Software has no effect on the direction of Shandong Publishing i.e., Shandong Publishing and Hangzhou Pinming go up and down completely randomly.
Pair Corralation between Shandong Publishing and Hangzhou Pinming
Assuming the 90 days trading horizon Shandong Publishing Media is expected to generate 1.11 times more return on investment than Hangzhou Pinming. However, Shandong Publishing is 1.11 times more volatile than Hangzhou Pinming Software. It trades about 0.15 of its potential returns per unit of risk. Hangzhou Pinming Software is currently generating about -0.1 per unit of risk. If you would invest 1,043 in Shandong Publishing Media on September 27, 2024 and sell it today you would earn a total of 91.00 from holding Shandong Publishing Media or generate 8.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Publishing Media vs. Hangzhou Pinming Software
Performance |
| Timeline |
| Shandong Publishing Media |
| Hangzhou Pinming Software |
Shandong Publishing and Hangzhou Pinming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Publishing and Hangzhou Pinming
The main advantage of trading using opposite Shandong Publishing and Hangzhou Pinming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Publishing position performs unexpectedly, Hangzhou Pinming 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 Hangzhou Pinming will offset losses from the drop in Hangzhou Pinming's long position.| Shandong Publishing vs. PetroChina Co Ltd | Shandong Publishing vs. China Mobile Limited | Shandong Publishing vs. CNOOC Limited | Shandong Publishing vs. Ping An Insurance |
| Hangzhou Pinming vs. Southern PublishingMedia Co | Hangzhou Pinming vs. China Asset Management | Hangzhou Pinming vs. Jiangsu Phoenix Publishing | Hangzhou Pinming vs. Shandong Publishing Media |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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