Correlation Between Shanghai AtHub and China State
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By analyzing existing cross correlation between Shanghai AtHub Co and China State Construction, you can compare the effects of market volatilities on Shanghai AtHub and China State 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 China State. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai AtHub and China State.
Diversification Opportunities for Shanghai AtHub and China State
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shanghai and China is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai AtHub Co and China State Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China State Construction 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 China State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China State Construction has no effect on the direction of Shanghai AtHub i.e., Shanghai AtHub and China State go up and down completely randomly.
Pair Corralation between Shanghai AtHub and China State
Assuming the 90 days trading horizon Shanghai AtHub Co is expected to generate 4.67 times more return on investment than China State. However, Shanghai AtHub is 4.67 times more volatile than China State Construction. It trades about 0.1 of its potential returns per unit of risk. China State Construction is currently generating about -0.21 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai AtHub Co vs. China State Construction
Performance |
| Timeline |
| Shanghai AtHub |
| China State Construction |
Shanghai AtHub and China State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai AtHub and China State
The main advantage of trading using opposite Shanghai AtHub and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai AtHub position performs unexpectedly, China State 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 China State will offset losses from the drop in China State'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 |
| China State vs. Sportsoul Co Ltd | China State vs. Fujian Longzhou Transportation | China State vs. Guangdong Xiongsu Technology | China State vs. Jiangsu Jinling Sports |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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