Correlation Between Shanghai Shuixing and Invengo Information
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By analyzing existing cross correlation between Shanghai Shuixing Home and Invengo Information Technology, you can compare the effects of market volatilities on Shanghai Shuixing and Invengo Information 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 Invengo Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shuixing and Invengo Information.
Diversification Opportunities for Shanghai Shuixing and Invengo Information
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shanghai and Invengo is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shuixing Home and Invengo Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invengo Information 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 Invengo Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invengo Information has no effect on the direction of Shanghai Shuixing i.e., Shanghai Shuixing and Invengo Information go up and down completely randomly.
Pair Corralation between Shanghai Shuixing and Invengo Information
Assuming the 90 days trading horizon Shanghai Shuixing Home is expected to under-perform the Invengo Information. In addition to that, Shanghai Shuixing is 1.02 times more volatile than Invengo Information Technology. It trades about -0.18 of its total potential returns per unit of risk. Invengo Information Technology is currently generating about 0.03 per unit of volatility. If you would invest 542.00 in Invengo Information Technology on November 2, 2024 and sell it today you would earn a total of 4.00 from holding Invengo Information Technology or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Shuixing Home vs. Invengo Information Technology
Performance |
| Timeline |
| Shanghai Shuixing Home |
| Invengo Information |
Shanghai Shuixing and Invengo Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Shuixing and Invengo Information
The main advantage of trading using opposite Shanghai Shuixing and Invengo Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shuixing position performs unexpectedly, Invengo Information 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 Invengo Information will offset losses from the drop in Invengo Information's long position.| Shanghai Shuixing vs. 360 Security Technology | Shanghai Shuixing vs. Tongding Interconnection Information | Shanghai Shuixing vs. Tianjin Ruixin Technology | Shanghai Shuixing vs. Jinyu Bio Technology Co |
| Invengo Information vs. Hongrun Construction Group | Invengo Information vs. Ningbo Construction Co | Invengo Information vs. Gansu Huangtai Wine marketing | Invengo Information vs. Qingdao Haier Biomedical |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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