Correlation Between Bank of Shanghai and Hubei Yingtong
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By analyzing existing cross correlation between Bank of Shanghai and Hubei Yingtong Telecommunication, you can compare the effects of market volatilities on Bank of Shanghai and Hubei Yingtong 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 Bank of Shanghai with a short position of Hubei Yingtong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Shanghai and Hubei Yingtong.
Diversification Opportunities for Bank of Shanghai and Hubei Yingtong
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and Hubei is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Shanghai and Hubei Yingtong Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Yingtong Telec and Bank of Shanghai 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 Bank of Shanghai are associated (or correlated) with Hubei Yingtong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Yingtong Telec has no effect on the direction of Bank of Shanghai i.e., Bank of Shanghai and Hubei Yingtong go up and down completely randomly.
Pair Corralation between Bank of Shanghai and Hubei Yingtong
Assuming the 90 days trading horizon Bank of Shanghai is expected to generate 8.98 times less return on investment than Hubei Yingtong. But when comparing it to its historical volatility, Bank of Shanghai is 5.87 times less risky than Hubei Yingtong. It trades about 0.15 of its potential returns per unit of risk. Hubei Yingtong Telecommunication is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,268 in Hubei Yingtong Telecommunication on November 3, 2024 and sell it today you would earn a total of 393.00 from holding Hubei Yingtong Telecommunication or generate 30.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Shanghai vs. Hubei Yingtong Telecommunicati
Performance |
| Timeline |
| Bank of Shanghai |
| Hubei Yingtong Telec |
Bank of Shanghai and Hubei Yingtong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Shanghai and Hubei Yingtong
The main advantage of trading using opposite Bank of Shanghai and Hubei Yingtong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Shanghai position performs unexpectedly, Hubei Yingtong 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 Hubei Yingtong will offset losses from the drop in Hubei Yingtong's long position.| Bank of Shanghai vs. Jiangxi Naipu Mining | Bank of Shanghai vs. Tianjin Silvery Dragon | Bank of Shanghai vs. Beijing Seeyon Internet | Bank of Shanghai vs. Olympic Circuit Technology |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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