Correlation Between Shanghai Laimu and Shaanxi Meineng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Laimu Electronics and Shaanxi Meineng Clean, you can compare the effects of market volatilities on Shanghai Laimu and Shaanxi Meineng 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 Laimu with a short position of Shaanxi Meineng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Laimu and Shaanxi Meineng.
Diversification Opportunities for Shanghai Laimu and Shaanxi Meineng
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shanghai and Shaanxi is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Laimu Electronics and Shaanxi Meineng Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Meineng Clean and Shanghai Laimu 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 Laimu Electronics are associated (or correlated) with Shaanxi Meineng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Meineng Clean has no effect on the direction of Shanghai Laimu i.e., Shanghai Laimu and Shaanxi Meineng go up and down completely randomly.
Pair Corralation between Shanghai Laimu and Shaanxi Meineng
Assuming the 90 days trading horizon Shanghai Laimu Electronics is expected to generate 2.18 times more return on investment than Shaanxi Meineng. However, Shanghai Laimu is 2.18 times more volatile than Shaanxi Meineng Clean. It trades about 0.03 of its potential returns per unit of risk. Shaanxi Meineng Clean is currently generating about 0.06 per unit of risk. If you would invest 783.00 in Shanghai Laimu Electronics on November 3, 2024 and sell it today you would earn a total of 9.00 from holding Shanghai Laimu Electronics or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Laimu Electronics vs. Shaanxi Meineng Clean
Performance |
| Timeline |
| Shanghai Laimu Elect |
| Shaanxi Meineng Clean |
Shanghai Laimu and Shaanxi Meineng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Laimu and Shaanxi Meineng
The main advantage of trading using opposite Shanghai Laimu and Shaanxi Meineng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Laimu position performs unexpectedly, Shaanxi Meineng 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 Shaanxi Meineng will offset losses from the drop in Shaanxi Meineng's long position.| Shanghai Laimu vs. Hefei Metalforming Mach | Shanghai Laimu vs. Ye Chiu Metal | Shanghai Laimu vs. Jiajia Food Group | Shanghai Laimu vs. Shandong Hongchuang Aluminum |
| Shaanxi Meineng vs. Bomesc Offshore Engineering | Shaanxi Meineng vs. Anhui Huaheng Biotechnology | Shaanxi Meineng vs. Duzhe Publishing Media | Shaanxi Meineng vs. Sichuan Hebang Biotechnology |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |