Correlation Between Beijing Shanghai and Industrial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Shanghai High Speed and Industrial and Commercial, you can compare the effects of market volatilities on Beijing Shanghai and Industrial 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 Beijing Shanghai with a short position of Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Shanghai and Industrial.
Diversification Opportunities for Beijing Shanghai and Industrial
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Industrial is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Shanghai High Speed and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial and Beijing 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 Beijing Shanghai High Speed are associated (or correlated) with Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Beijing Shanghai i.e., Beijing Shanghai and Industrial go up and down completely randomly.
Pair Corralation between Beijing Shanghai and Industrial
Assuming the 90 days trading horizon Beijing Shanghai High Speed is expected to under-perform the Industrial. In addition to that, Beijing Shanghai is 1.57 times more volatile than Industrial and Commercial. It trades about -0.06 of its total potential returns per unit of risk. Industrial and Commercial is currently generating about -0.08 per unit of volatility. If you would invest 616.00 in Industrial and Commercial on August 25, 2024 and sell it today you would lose (11.00) from holding Industrial and Commercial or give up 1.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Shanghai High Speed vs. Industrial and Commercial
Performance |
| Timeline |
| Beijing Shanghai High |
| Industrial and Commercial |
Beijing Shanghai and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Shanghai and Industrial
The main advantage of trading using opposite Beijing Shanghai and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Shanghai position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.| Beijing Shanghai vs. CSSC Offshore Marine | Beijing Shanghai vs. Jonjee Hi tech Industrial | Beijing Shanghai vs. ChengDu Hi Tech Development | Beijing Shanghai vs. Suzhou Mingzhi Technology |
| Industrial vs. Anhui Huilong Agricultural | Industrial vs. Agricultural Bank of | Industrial vs. Masterwork Machinery | Industrial vs. Huitong Construction Group |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Global Correlations Find global opportunities by holding instruments from different markets |