Correlation Between Shanghai Rongtai and Qinghai Salt
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By analyzing existing cross correlation between Shanghai Rongtai Health and Qinghai Salt Lake, you can compare the effects of market volatilities on Shanghai Rongtai and Qinghai Salt 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 Rongtai with a short position of Qinghai Salt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Rongtai and Qinghai Salt.
Diversification Opportunities for Shanghai Rongtai and Qinghai Salt
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shanghai and Qinghai is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Rongtai Health and Qinghai Salt Lake in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qinghai Salt Lake and Shanghai Rongtai 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 Rongtai Health are associated (or correlated) with Qinghai Salt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qinghai Salt Lake has no effect on the direction of Shanghai Rongtai i.e., Shanghai Rongtai and Qinghai Salt go up and down completely randomly.
Pair Corralation between Shanghai Rongtai and Qinghai Salt
Assuming the 90 days trading horizon Shanghai Rongtai Health is expected to generate 1.4 times more return on investment than Qinghai Salt. However, Shanghai Rongtai is 1.4 times more volatile than Qinghai Salt Lake. It trades about -0.02 of its potential returns per unit of risk. Qinghai Salt Lake is currently generating about -0.04 per unit of risk. If you would invest 2,046 in Shanghai Rongtai Health on October 13, 2024 and sell it today you would lose (713.00) from holding Shanghai Rongtai Health or give up 34.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shanghai Rongtai Health vs. Qinghai Salt Lake
Performance |
| Timeline |
| Shanghai Rongtai Health |
| Qinghai Salt Lake |
Shanghai Rongtai and Qinghai Salt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Rongtai and Qinghai Salt
The main advantage of trading using opposite Shanghai Rongtai and Qinghai Salt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Rongtai position performs unexpectedly, Qinghai Salt 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 Qinghai Salt will offset losses from the drop in Qinghai Salt's long position.| Shanghai Rongtai vs. Yingde Greatchem Chemicals | Shanghai Rongtai vs. Dawning Information Industry | Shanghai Rongtai vs. Ningxia Younglight Chemicals | Shanghai Rongtai vs. Hangzhou Gisway Information |
| Qinghai Salt vs. Shanghai Rongtai Health | Qinghai Salt vs. Heren Health Co | Qinghai Salt vs. Shandong Hongchuang Aluminum | Qinghai Salt vs. Everjoy Health 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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