Correlation Between Servyou Software and Shanghai Shibei
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By analyzing existing cross correlation between Servyou Software Group and Shanghai Shibei Hi Tech, you can compare the effects of market volatilities on Servyou Software and Shanghai Shibei 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 Servyou Software with a short position of Shanghai Shibei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Servyou Software and Shanghai Shibei.
Diversification Opportunities for Servyou Software and Shanghai Shibei
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Servyou and Shanghai is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Servyou Software Group and Shanghai Shibei Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shibei Hi and Servyou Software 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 Servyou Software Group are associated (or correlated) with Shanghai Shibei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shibei Hi has no effect on the direction of Servyou Software i.e., Servyou Software and Shanghai Shibei go up and down completely randomly.
Pair Corralation between Servyou Software and Shanghai Shibei
Assuming the 90 days trading horizon Servyou Software Group is expected to generate 1.83 times more return on investment than Shanghai Shibei. However, Servyou Software is 1.83 times more volatile than Shanghai Shibei Hi Tech. It trades about 0.31 of its potential returns per unit of risk. Shanghai Shibei Hi Tech is currently generating about 0.08 per unit of risk. If you would invest 2,828 in Servyou Software Group on November 6, 2024 and sell it today you would earn a total of 442.00 from holding Servyou Software Group or generate 15.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Servyou Software Group vs. Shanghai Shibei Hi Tech
Performance |
| Timeline |
| Servyou Software |
| Shanghai Shibei Hi |
Servyou Software and Shanghai Shibei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Servyou Software and Shanghai Shibei
The main advantage of trading using opposite Servyou Software and Shanghai Shibei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Servyou Software position performs unexpectedly, Shanghai Shibei 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 Shibei will offset losses from the drop in Shanghai Shibei's long position.| Servyou Software vs. Shengda Mining Co | Servyou Software vs. Zhengzhou Coal Mining | Servyou Software vs. CICC Fund Management | Servyou Software vs. Cicc Fund Management |
| Shanghai Shibei vs. Songz Automobile Air | Shanghai Shibei vs. Jiangsu Xinri E Vehicle | Shanghai Shibei vs. Ningbo Tip Rubber | Shanghai Shibei vs. Liaoning Xinde New |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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