Correlation Between Shanghai Shuixing and Hunan Mendale
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Shuixing Home and Hunan Mendale Hometextile, you can compare the effects of market volatilities on Shanghai Shuixing and Hunan Mendale 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 Hunan Mendale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shuixing and Hunan Mendale.
Diversification Opportunities for Shanghai Shuixing and Hunan Mendale
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Hunan is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shuixing Home and Hunan Mendale Hometextile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Mendale Hometextile 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 Hunan Mendale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Mendale Hometextile has no effect on the direction of Shanghai Shuixing i.e., Shanghai Shuixing and Hunan Mendale go up and down completely randomly.
Pair Corralation between Shanghai Shuixing and Hunan Mendale
Assuming the 90 days trading horizon Shanghai Shuixing is expected to generate 9.04 times less return on investment than Hunan Mendale. But when comparing it to its historical volatility, Shanghai Shuixing Home is 1.36 times less risky than Hunan Mendale. It trades about 0.01 of its potential returns per unit of risk. Hunan Mendale Hometextile is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 211.00 in Hunan Mendale Hometextile on November 3, 2024 and sell it today you would earn a total of 98.00 from holding Hunan Mendale Hometextile or generate 46.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Shuixing Home vs. Hunan Mendale Hometextile
Performance |
| Timeline |
| Shanghai Shuixing Home |
| Hunan Mendale Hometextile |
Shanghai Shuixing and Hunan Mendale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Shuixing and Hunan Mendale
The main advantage of trading using opposite Shanghai Shuixing and Hunan Mendale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shuixing position performs unexpectedly, Hunan Mendale 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 Hunan Mendale will offset losses from the drop in Hunan Mendale's long position.| Shanghai Shuixing vs. Dongfeng Automobile Co | Shanghai Shuixing vs. Anhui Gujing Distillery | Shanghai Shuixing vs. GuoChuang Software Co | Shanghai Shuixing vs. Hangzhou Pinming Software |
| Hunan Mendale vs. Jilin OLED Material | Hunan Mendale vs. Duzhe Publishing Media | Hunan Mendale vs. Juneyao Airlines | Hunan Mendale vs. Sanxiang Advanced Materials |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |