Correlation Between Shanghai AtHub and Shenzhen Inovance
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai AtHub Co and Shenzhen Inovance Tech, you can compare the effects of market volatilities on Shanghai AtHub and Shenzhen Inovance 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 AtHub with a short position of Shenzhen Inovance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai AtHub and Shenzhen Inovance.
Diversification Opportunities for Shanghai AtHub and Shenzhen Inovance
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Shenzhen is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai AtHub Co and Shenzhen Inovance Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Inovance Tech and Shanghai AtHub 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 AtHub Co are associated (or correlated) with Shenzhen Inovance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Inovance Tech has no effect on the direction of Shanghai AtHub i.e., Shanghai AtHub and Shenzhen Inovance go up and down completely randomly.
Pair Corralation between Shanghai AtHub and Shenzhen Inovance
Assuming the 90 days trading horizon Shanghai AtHub Co is expected to generate 1.54 times more return on investment than Shenzhen Inovance. However, Shanghai AtHub is 1.54 times more volatile than Shenzhen Inovance Tech. It trades about 0.29 of its potential returns per unit of risk. Shenzhen Inovance Tech is currently generating about 0.06 per unit of risk. If you would invest 1,651 in Shanghai AtHub Co on September 28, 2024 and sell it today you would earn a total of 265.00 from holding Shanghai AtHub Co or generate 16.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shanghai AtHub Co vs. Shenzhen Inovance Tech
Performance |
| Timeline |
| Shanghai AtHub |
| Shenzhen Inovance Tech |
Shanghai AtHub and Shenzhen Inovance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai AtHub and Shenzhen Inovance
The main advantage of trading using opposite Shanghai AtHub and Shenzhen Inovance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai AtHub position performs unexpectedly, Shenzhen Inovance 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 Shenzhen Inovance will offset losses from the drop in Shenzhen Inovance's long position.| Shanghai AtHub vs. Industrial and Commercial | Shanghai AtHub vs. Agricultural Bank of | Shanghai AtHub vs. China Construction Bank | Shanghai AtHub vs. Bank of China |
| Shenzhen Inovance vs. Innovative Medical Management | Shenzhen Inovance vs. Gifore Agricultural Machinery | Shenzhen Inovance vs. JCHX Mining Management | Shenzhen Inovance vs. Long Yuan Construction |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |