Correlation Between China International and Shanghai Metersbonwe
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By analyzing existing cross correlation between China International Capital and Shanghai Metersbonwe FashionAccessories, you can compare the effects of market volatilities on China International and Shanghai Metersbonwe 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 International with a short position of Shanghai Metersbonwe. Check out your portfolio center. Please also check ongoing floating volatility patterns of China International and Shanghai Metersbonwe.
Diversification Opportunities for China International and Shanghai Metersbonwe
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Shanghai is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding China International Capital and Shanghai Metersbonwe FashionAc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Metersbonwe and China International 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 International Capital are associated (or correlated) with Shanghai Metersbonwe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Metersbonwe has no effect on the direction of China International i.e., China International and Shanghai Metersbonwe go up and down completely randomly.
Pair Corralation between China International and Shanghai Metersbonwe
Assuming the 90 days trading horizon China International is expected to generate 1.39 times less return on investment than Shanghai Metersbonwe. In addition to that, China International is 1.09 times more volatile than Shanghai Metersbonwe FashionAccessories. It trades about 0.14 of its total potential returns per unit of risk. Shanghai Metersbonwe FashionAccessories is currently generating about 0.21 per unit of volatility. If you would invest 137.00 in Shanghai Metersbonwe FashionAccessories on September 2, 2024 and sell it today you would earn a total of 65.00 from holding Shanghai Metersbonwe FashionAccessories or generate 47.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China International Capital vs. Shanghai Metersbonwe FashionAc
Performance |
| Timeline |
| China International |
| Shanghai Metersbonwe |
China International and Shanghai Metersbonwe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China International and Shanghai Metersbonwe
The main advantage of trading using opposite China International and Shanghai Metersbonwe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China International position performs unexpectedly, Shanghai Metersbonwe 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 Metersbonwe will offset losses from the drop in Shanghai Metersbonwe's long position.| China International vs. UE Furniture Co | China International vs. CICC Fund Management | China International vs. Hunan Mendale Hometextile | China International vs. China Asset Management |
| Shanghai Metersbonwe vs. Cultural Investment Holdings | Shanghai Metersbonwe vs. Gome Telecom Equipment | Shanghai Metersbonwe vs. Bus Online Co | Shanghai Metersbonwe vs. Holitech Technology 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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