Correlation Between Shanghai Rongtai and Southern PublishingMedia
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Rongtai Health and Southern PublishingMedia Co, you can compare the effects of market volatilities on Shanghai Rongtai and Southern PublishingMedia 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 Southern PublishingMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Rongtai and Southern PublishingMedia.
Diversification Opportunities for Shanghai Rongtai and Southern PublishingMedia
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shanghai and Southern is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Rongtai Health and Southern PublishingMedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern PublishingMedia 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 Southern PublishingMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern PublishingMedia has no effect on the direction of Shanghai Rongtai i.e., Shanghai Rongtai and Southern PublishingMedia go up and down completely randomly.
Pair Corralation between Shanghai Rongtai and Southern PublishingMedia
Assuming the 90 days trading horizon Shanghai Rongtai Health is expected to under-perform the Southern PublishingMedia. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Rongtai Health is 1.58 times less risky than Southern PublishingMedia. The stock trades about -0.01 of its potential returns per unit of risk. The Southern PublishingMedia Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 930.00 in Southern PublishingMedia Co on December 12, 2024 and sell it today you would earn a total of 654.00 from holding Southern PublishingMedia Co or generate 70.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Rongtai Health vs. Southern PublishingMedia Co
Performance |
| Timeline |
| Shanghai Rongtai Health |
| Southern PublishingMedia |
Shanghai Rongtai and Southern PublishingMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Rongtai and Southern PublishingMedia
The main advantage of trading using opposite Shanghai Rongtai and Southern PublishingMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Rongtai position performs unexpectedly, Southern PublishingMedia 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 Southern PublishingMedia will offset losses from the drop in Southern PublishingMedia's long position.| Shanghai Rongtai vs. GRINM Semiconductor Materials | ||
| Shanghai Rongtai vs. Allied Machinery Co | ||
| Shanghai Rongtai vs. Ingenic Semiconductor | ||
| Shanghai Rongtai vs. Zhejiang Yinlun Machinery |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |