Correlation Between Shanghai Shuixing and Central Plains
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By analyzing existing cross correlation between Shanghai Shuixing Home and Central Plains Environment, you can compare the effects of market volatilities on Shanghai Shuixing and Central Plains 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 Shanghai Shuixing with a short position of Central Plains. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shuixing and Central Plains.
Diversification Opportunities for Shanghai Shuixing and Central Plains
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shanghai and Central is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shuixing Home and Central Plains Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Plains Envir and Shanghai Shuixing 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 Shanghai Shuixing Home are associated (or correlated) with Central Plains. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Plains Envir has no effect on the direction of Shanghai Shuixing i.e., Shanghai Shuixing and Central Plains go up and down completely randomly.
Pair Corralation between Shanghai Shuixing and Central Plains
Assuming the 90 days trading horizon Shanghai Shuixing Home is expected to under-perform the Central Plains. In addition to that, Shanghai Shuixing is 2.39 times more volatile than Central Plains Environment. It trades about -0.05 of its total potential returns per unit of risk. Central Plains Environment is currently generating about -0.06 per unit of volatility. If you would invest 888.00 in Central Plains Environment on October 30, 2024 and sell it today you would lose (29.00) from holding Central Plains Environment or give up 3.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Shuixing Home vs. Central Plains Environment
Performance |
| Timeline |
| Shanghai Shuixing Home |
| Central Plains Envir |
Shanghai Shuixing and Central Plains Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Shuixing and Central Plains
The main advantage of trading using opposite Shanghai Shuixing and Central Plains positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shuixing position performs unexpectedly, Central Plains 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 Central Plains will offset losses from the drop in Central Plains' long position.| Shanghai Shuixing vs. Pengxin International Mining | Shanghai Shuixing vs. Guangdong Silvere Sci | Shanghai Shuixing vs. Yingde Greatchem Chemicals | Shanghai Shuixing vs. Bomesc Offshore Engineering |
| Central Plains vs. Industrial and Commercial | Central Plains vs. Agricultural Bank of | Central Plains vs. China Construction Bank | Central Plains vs. Bank of China |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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