Correlation Between Shanghai AtHub and Industrial
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By analyzing existing cross correlation between Shanghai AtHub Co and Industrial and Commercial, you can compare the effects of market volatilities on Shanghai AtHub and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai AtHub and Industrial.
Diversification Opportunities for Shanghai AtHub and Industrial
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Industrial is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai AtHub Co and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Shanghai AtHub i.e., Shanghai AtHub and Industrial go up and down completely randomly.
Pair Corralation between Shanghai AtHub and Industrial
Assuming the 90 days trading horizon Shanghai AtHub Co is expected to generate 3.73 times more return on investment than Industrial. However, Shanghai AtHub is 3.73 times more volatile than Industrial and Commercial. It trades about 0.1 of its potential returns per unit of risk. Industrial and Commercial is currently generating about 0.06 per unit of risk. If you would invest 1,702 in Shanghai AtHub Co on October 17, 2024 and sell it today you would earn a total of 156.00 from holding Shanghai AtHub Co or generate 9.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai AtHub Co vs. Industrial and Commercial
Performance |
| Timeline |
| Shanghai AtHub |
| Industrial and Commercial |
Shanghai AtHub and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai AtHub and Industrial
The main advantage of trading using opposite Shanghai AtHub and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai AtHub position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.| Shanghai AtHub vs. China State Construction | Shanghai AtHub vs. Poly Real Estate | Shanghai AtHub vs. China Vanke Co | Shanghai AtHub vs. China Merchants Shekou |
| Industrial vs. Hengli Industrial Development | Industrial vs. Sichuan Jinshi Technology | Industrial vs. Anhui Jinhe Industrial | Industrial vs. Xinjiang Baodi 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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