Correlation Between Shanghai Shuixing and Xinjiang Communications
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By analyzing existing cross correlation between Shanghai Shuixing Home and Xinjiang Communications Construction, you can compare the effects of market volatilities on Shanghai Shuixing and Xinjiang Communications 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 Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shuixing and Xinjiang Communications.
Diversification Opportunities for Shanghai Shuixing and Xinjiang Communications
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shanghai and Xinjiang is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shuixing Home and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications 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 Xinjiang Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of Shanghai Shuixing i.e., Shanghai Shuixing and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Shanghai Shuixing and Xinjiang Communications
Assuming the 90 days trading horizon Shanghai Shuixing Home is expected to generate 0.72 times more return on investment than Xinjiang Communications. However, Shanghai Shuixing Home is 1.39 times less risky than Xinjiang Communications. It trades about 0.03 of its potential returns per unit of risk. Xinjiang Communications Construction is currently generating about 0.0 per unit of risk. If you would invest 1,329 in Shanghai Shuixing Home on October 16, 2024 and sell it today you would earn a total of 225.00 from holding Shanghai Shuixing Home or generate 16.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Shuixing Home vs. Xinjiang Communications Constr
Performance |
| Timeline |
| Shanghai Shuixing Home |
| Xinjiang Communications |
Shanghai Shuixing and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Shuixing and Xinjiang Communications
The main advantage of trading using opposite Shanghai Shuixing and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shuixing position performs unexpectedly, Xinjiang Communications 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 Xinjiang Communications will offset losses from the drop in Xinjiang Communications' long position.| Shanghai Shuixing vs. Henan Shuanghui Investment | Shanghai Shuixing vs. Tianshui Huatian Technology | Shanghai Shuixing vs. 360 Security Technology | Shanghai Shuixing vs. Luyin Investment Group |
| Xinjiang Communications vs. Jinhui Liquor Co | Xinjiang Communications vs. Xiamen Goldenhome Co | Xinjiang Communications vs. Shanghai Shuixing Home | Xinjiang Communications vs. Hainan Airlines Co |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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