Correlation Between Hefei Metalforming and Shanghai Shuixing
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By analyzing existing cross correlation between Hefei Metalforming Mach and Shanghai Shuixing Home, you can compare the effects of market volatilities on Hefei Metalforming and Shanghai Shuixing 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 Hefei Metalforming with a short position of Shanghai Shuixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and Shanghai Shuixing.
Diversification Opportunities for Hefei Metalforming and Shanghai Shuixing
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hefei and Shanghai is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach and Shanghai Shuixing Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shuixing Home and Hefei Metalforming 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 Hefei Metalforming Mach are associated (or correlated) with Shanghai Shuixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shuixing Home has no effect on the direction of Hefei Metalforming i.e., Hefei Metalforming and Shanghai Shuixing go up and down completely randomly.
Pair Corralation between Hefei Metalforming and Shanghai Shuixing
Assuming the 90 days trading horizon Hefei Metalforming Mach is expected to generate 1.08 times more return on investment than Shanghai Shuixing. However, Hefei Metalforming is 1.08 times more volatile than Shanghai Shuixing Home. It trades about 0.09 of its potential returns per unit of risk. Shanghai Shuixing Home is currently generating about -0.04 per unit of risk. If you would invest 606.00 in Hefei Metalforming Mach on September 3, 2024 and sell it today you would earn a total of 191.00 from holding Hefei Metalforming Mach or generate 31.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hefei Metalforming Mach vs. Shanghai Shuixing Home
Performance |
| Timeline |
| Hefei Metalforming Mach |
| Shanghai Shuixing Home |
Hefei Metalforming and Shanghai Shuixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and Shanghai Shuixing
The main advantage of trading using opposite Hefei Metalforming and Shanghai Shuixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming position performs unexpectedly, Shanghai Shuixing 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 Shuixing will offset losses from the drop in Shanghai Shuixing's long position.| Hefei Metalforming vs. Cultural Investment Holdings | Hefei Metalforming vs. Gome Telecom Equipment | Hefei Metalforming vs. Bus Online Co | Hefei Metalforming vs. Holitech Technology Co |
| Shanghai Shuixing vs. Cofoe Medical Technology | Shanghai Shuixing vs. Qingdao Baheal Medical | Shanghai Shuixing vs. Jinling Hotel Corp | Shanghai Shuixing vs. Allmed Medical Products |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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