Correlation Between Shanghai Shuixing and Yonghui Superstores
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By analyzing existing cross correlation between Shanghai Shuixing Home and Yonghui Superstores Co, you can compare the effects of market volatilities on Shanghai Shuixing and Yonghui Superstores 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 Yonghui Superstores. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shuixing and Yonghui Superstores.
Diversification Opportunities for Shanghai Shuixing and Yonghui Superstores
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Yonghui is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shuixing Home and Yonghui Superstores Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yonghui Superstores 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 Yonghui Superstores. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yonghui Superstores has no effect on the direction of Shanghai Shuixing i.e., Shanghai Shuixing and Yonghui Superstores go up and down completely randomly.
Pair Corralation between Shanghai Shuixing and Yonghui Superstores
Assuming the 90 days trading horizon Shanghai Shuixing is expected to generate 2.18 times less return on investment than Yonghui Superstores. But when comparing it to its historical volatility, Shanghai Shuixing Home is 1.46 times less risky than Yonghui Superstores. It trades about 0.03 of its potential returns per unit of risk. Yonghui Superstores Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 364.00 in Yonghui Superstores Co on September 5, 2024 and sell it today you would earn a total of 229.00 from holding Yonghui Superstores Co or generate 62.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Shuixing Home vs. Yonghui Superstores Co
Performance |
| Timeline |
| Shanghai Shuixing Home |
| Yonghui Superstores |
Shanghai Shuixing and Yonghui Superstores Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Shuixing and Yonghui Superstores
The main advantage of trading using opposite Shanghai Shuixing and Yonghui Superstores positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shuixing position performs unexpectedly, Yonghui Superstores 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 Yonghui Superstores will offset losses from the drop in Yonghui Superstores' long position.| Shanghai Shuixing vs. Qingdao Choho Industrial | Shanghai Shuixing vs. GRINM Semiconductor Materials | Shanghai Shuixing vs. Shandong Mining Machinery | Shanghai Shuixing vs. Juewei Food Co |
| Yonghui Superstores vs. Shenzhen SDG Information | Yonghui Superstores vs. Guangzhou Ruoyuchen Information | Yonghui Superstores vs. Chinese Universe Publishing | Yonghui Superstores vs. YLZ Information Tech |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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