Correlation Between Allied Machinery and Shanghai Pudong
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By analyzing existing cross correlation between Allied Machinery Co and Shanghai Pudong Development, you can compare the effects of market volatilities on Allied Machinery and Shanghai Pudong 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 Allied Machinery with a short position of Shanghai Pudong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allied Machinery and Shanghai Pudong.
Diversification Opportunities for Allied Machinery and Shanghai Pudong
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Allied and Shanghai is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Allied Machinery Co and Shanghai Pudong Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Pudong Deve and Allied Machinery 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 Allied Machinery Co are associated (or correlated) with Shanghai Pudong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Pudong Deve has no effect on the direction of Allied Machinery i.e., Allied Machinery and Shanghai Pudong go up and down completely randomly.
Pair Corralation between Allied Machinery and Shanghai Pudong
Assuming the 90 days trading horizon Allied Machinery Co is expected to generate 3.36 times more return on investment than Shanghai Pudong. However, Allied Machinery is 3.36 times more volatile than Shanghai Pudong Development. It trades about 0.17 of its potential returns per unit of risk. Shanghai Pudong Development is currently generating about 0.17 per unit of risk. If you would invest 1,714 in Allied Machinery Co on October 11, 2024 and sell it today you would earn a total of 286.00 from holding Allied Machinery Co or generate 16.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allied Machinery Co vs. Shanghai Pudong Development
Performance |
| Timeline |
| Allied Machinery |
| Shanghai Pudong Deve |
Allied Machinery and Shanghai Pudong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allied Machinery and Shanghai Pudong
The main advantage of trading using opposite Allied Machinery and Shanghai Pudong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allied Machinery position performs unexpectedly, Shanghai Pudong 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 Pudong will offset losses from the drop in Shanghai Pudong's long position.| Allied Machinery vs. Ping An Insurance | Allied Machinery vs. Chongqing Shunbo Aluminum | Allied Machinery vs. Jiangsu Financial Leasing | Allied Machinery vs. Unisplendour Corp |
| Shanghai Pudong vs. Zhengzhou Coal Mining | Shanghai Pudong vs. Masterwork Machinery | Shanghai Pudong vs. Qijing Machinery | Shanghai Pudong vs. Hongrun Construction Group |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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