Correlation Between China State and Shandong Publishing
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By analyzing existing cross correlation between China State Construction and Shandong Publishing Media, you can compare the effects of market volatilities on China State and Shandong Publishing 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 China State with a short position of Shandong Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Shandong Publishing.
Diversification Opportunities for China State and Shandong Publishing
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Shandong is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and Shandong Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Publishing Media and China State 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 China State Construction are associated (or correlated) with Shandong Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Publishing Media has no effect on the direction of China State i.e., China State and Shandong Publishing go up and down completely randomly.
Pair Corralation between China State and Shandong Publishing
Assuming the 90 days trading horizon China State Construction is expected to generate 1.17 times more return on investment than Shandong Publishing. However, China State is 1.17 times more volatile than Shandong Publishing Media. It trades about -0.07 of its potential returns per unit of risk. Shandong Publishing Media is currently generating about -0.26 per unit of risk. If you would invest 614.00 in China State Construction on August 29, 2024 and sell it today you would lose (22.00) from holding China State Construction or give up 3.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Shandong Publishing Media
Performance |
| Timeline |
| China State Construction |
| Shandong Publishing Media |
China State and Shandong Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Shandong Publishing
The main advantage of trading using opposite China State and Shandong Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State position performs unexpectedly, Shandong Publishing 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 Shandong Publishing will offset losses from the drop in Shandong Publishing's long position.| China State vs. Shenyang Chemical Industry | China State vs. Lianhe Chemical Technology | China State vs. North Huajin Chemical | China State vs. Maoming Petro Chemical Shihua |
| Shandong Publishing vs. Industrial and Commercial | Shandong Publishing vs. Agricultural Bank of | Shandong Publishing vs. China Construction Bank | Shandong Publishing vs. Bank of China |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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