Correlation Between Industrial and Shanghai Suochen
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By analyzing existing cross correlation between Industrial and Commercial and Shanghai Suochen Information, you can compare the effects of market volatilities on Industrial and Shanghai Suochen 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 Industrial with a short position of Shanghai Suochen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Shanghai Suochen.
Diversification Opportunities for Industrial and Shanghai Suochen
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Industrial and Shanghai is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Shanghai Suochen Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Suochen Inf and Industrial 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 Industrial and Commercial are associated (or correlated) with Shanghai Suochen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Suochen Inf has no effect on the direction of Industrial i.e., Industrial and Shanghai Suochen go up and down completely randomly.
Pair Corralation between Industrial and Shanghai Suochen
Assuming the 90 days trading horizon Industrial is expected to generate 1.43 times less return on investment than Shanghai Suochen. But when comparing it to its historical volatility, Industrial and Commercial is 3.78 times less risky than Shanghai Suochen. It trades about 0.04 of its potential returns per unit of risk. Shanghai Suochen Information is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 5,868 in Shanghai Suochen Information on October 14, 2024 and sell it today you would lose (95.00) from holding Shanghai Suochen Information or give up 1.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Shanghai Suochen Information
Performance |
| Timeline |
| Industrial and Commercial |
| Shanghai Suochen Inf |
Industrial and Shanghai Suochen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Shanghai Suochen
The main advantage of trading using opposite Industrial and Shanghai Suochen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Shanghai Suochen 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 Shanghai Suochen will offset losses from the drop in Shanghai Suochen's long position.| Industrial vs. Huizhou Speed Wireless | Industrial vs. Winner Medical Co | Industrial vs. Quectel Wireless Solutions | Industrial vs. Kontour Medical Technology |
| Shanghai Suochen vs. China Life Insurance | Shanghai Suochen vs. Cinda Securities Co | Shanghai Suochen vs. Piotech Inc A | Shanghai Suochen vs. Dongxing Sec Co |
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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