Correlation Between Shanghai Shuixing and China Zheshang
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By analyzing existing cross correlation between Shanghai Shuixing Home and China Zheshang Bank, you can compare the effects of market volatilities on Shanghai Shuixing and China Zheshang 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 China Zheshang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shuixing and China Zheshang.
Diversification Opportunities for Shanghai Shuixing and China Zheshang
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and China is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shuixing Home and China Zheshang Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Zheshang Bank 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 China Zheshang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Zheshang Bank has no effect on the direction of Shanghai Shuixing i.e., Shanghai Shuixing and China Zheshang go up and down completely randomly.
Pair Corralation between Shanghai Shuixing and China Zheshang
Assuming the 90 days trading horizon Shanghai Shuixing Home is expected to generate 3.59 times more return on investment than China Zheshang. However, Shanghai Shuixing is 3.59 times more volatile than China Zheshang Bank. It trades about 0.33 of its potential returns per unit of risk. China Zheshang Bank is currently generating about 0.17 per unit of risk. If you would invest 1,388 in Shanghai Shuixing Home on September 14, 2024 and sell it today you would earn a total of 416.00 from holding Shanghai Shuixing Home or generate 29.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shanghai Shuixing Home vs. China Zheshang Bank
Performance |
| Timeline |
| Shanghai Shuixing Home |
| China Zheshang Bank |
Shanghai Shuixing and China Zheshang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Shuixing and China Zheshang
The main advantage of trading using opposite Shanghai Shuixing and China Zheshang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shuixing position performs unexpectedly, China Zheshang 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 China Zheshang will offset losses from the drop in China Zheshang's long position.| Shanghai Shuixing vs. Nanjing Putian Telecommunications | Shanghai Shuixing vs. Tianjin Realty Development | Shanghai Shuixing vs. Kangyue Technology Co | Shanghai Shuixing vs. Shenzhen Hifuture Electric |
| China Zheshang vs. Heilongjiang Transport Development | China Zheshang vs. Sino Platinum Metals Co | China Zheshang vs. Shandong Huifa Foodstuff | China Zheshang vs. Tianshan Aluminum Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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