Correlation Between Beijing Shanghai and Bank of Changsha
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By analyzing existing cross correlation between Beijing Shanghai High Speed and Bank of Changsha, you can compare the effects of market volatilities on Beijing Shanghai and Bank of Changsha 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 Bank of Changsha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Shanghai and Bank of Changsha.
Diversification Opportunities for Beijing Shanghai and Bank of Changsha
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Bank is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Shanghai High Speed and Bank of Changsha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Changsha 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 Bank of Changsha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Changsha has no effect on the direction of Beijing Shanghai i.e., Beijing Shanghai and Bank of Changsha go up and down completely randomly.
Pair Corralation between Beijing Shanghai and Bank of Changsha
Assuming the 90 days trading horizon Beijing Shanghai High Speed is expected to generate 1.22 times more return on investment than Bank of Changsha. However, Beijing Shanghai is 1.22 times more volatile than Bank of Changsha. It trades about 0.38 of its potential returns per unit of risk. Bank of Changsha is currently generating about 0.14 per unit of risk. If you would invest 557.00 in Beijing Shanghai High Speed on September 14, 2024 and sell it today you would earn a total of 80.00 from holding Beijing Shanghai High Speed or generate 14.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Shanghai High Speed vs. Bank of Changsha
Performance |
| Timeline |
| Beijing Shanghai High |
| Bank of Changsha |
Beijing Shanghai and Bank of Changsha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Shanghai and Bank of Changsha
The main advantage of trading using opposite Beijing Shanghai and Bank of Changsha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Shanghai position performs unexpectedly, Bank of Changsha 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 Bank of Changsha will offset losses from the drop in Bank of Changsha's long position.| Beijing Shanghai vs. Tianshui Huatian Technology | Beijing Shanghai vs. Shenyang Chemical Industry | Beijing Shanghai vs. Suzhou Douson Drilling | Beijing Shanghai vs. Cofco Biochemical Anhui |
| Bank of Changsha vs. Northking Information Technology | Bank of Changsha vs. AVCON Information Tech | Bank of Changsha vs. Invengo Information Technology | Bank of Changsha vs. Peoples Insurance of |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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