Correlation Between RoadMain T and Shanghai Broadband
Specify exactly 2 symbols:
By analyzing existing cross correlation between RoadMain T Co and Shanghai Broadband Technology, you can compare the effects of market volatilities on RoadMain T and Shanghai Broadband 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 RoadMain T with a short position of Shanghai Broadband. Check out your portfolio center. Please also check ongoing floating volatility patterns of RoadMain T and Shanghai Broadband.
Diversification Opportunities for RoadMain T and Shanghai Broadband
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between RoadMain and Shanghai is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding RoadMain T Co and Shanghai Broadband Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Broadband and RoadMain T 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 RoadMain T Co are associated (or correlated) with Shanghai Broadband. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Broadband has no effect on the direction of RoadMain T i.e., RoadMain T and Shanghai Broadband go up and down completely randomly.
Pair Corralation between RoadMain T and Shanghai Broadband
Assuming the 90 days trading horizon RoadMain T Co is expected to generate 0.96 times more return on investment than Shanghai Broadband. However, RoadMain T Co is 1.04 times less risky than Shanghai Broadband. It trades about -0.04 of its potential returns per unit of risk. Shanghai Broadband Technology is currently generating about -0.17 per unit of risk. If you would invest 3,107 in RoadMain T Co on September 28, 2024 and sell it today you would lose (104.00) from holding RoadMain T Co or give up 3.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
RoadMain T Co vs. Shanghai Broadband Technology
Performance |
| Timeline |
| RoadMain T |
| Shanghai Broadband |
RoadMain T and Shanghai Broadband Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RoadMain T and Shanghai Broadband
The main advantage of trading using opposite RoadMain T and Shanghai Broadband positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RoadMain T position performs unexpectedly, Shanghai Broadband 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 Shanghai Broadband will offset losses from the drop in Shanghai Broadband's long position.| RoadMain T vs. Ming Yang Smart | RoadMain T vs. 159681 | RoadMain T vs. 159005 | RoadMain T vs. Loctek Ergonomic Technology |
| Shanghai Broadband vs. Zijin Mining Group | Shanghai Broadband vs. Wanhua Chemical Group | Shanghai Broadband vs. Baoshan Iron Steel | Shanghai Broadband vs. Shandong Gold Mining |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |