Correlation Between Shanghai Action and Shanghai Metersbonwe
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By analyzing existing cross correlation between Shanghai Action Education and Shanghai Metersbonwe FashionAccessories, you can compare the effects of market volatilities on Shanghai Action and Shanghai Metersbonwe 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 Action with a short position of Shanghai Metersbonwe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Action and Shanghai Metersbonwe.
Diversification Opportunities for Shanghai Action and Shanghai Metersbonwe
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shanghai and Shanghai is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Action Education and Shanghai Metersbonwe FashionAc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Metersbonwe and Shanghai Action 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 Action Education are associated (or correlated) with Shanghai Metersbonwe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Metersbonwe has no effect on the direction of Shanghai Action i.e., Shanghai Action and Shanghai Metersbonwe go up and down completely randomly.
Pair Corralation between Shanghai Action and Shanghai Metersbonwe
Assuming the 90 days trading horizon Shanghai Action is expected to generate 7.92 times less return on investment than Shanghai Metersbonwe. But when comparing it to its historical volatility, Shanghai Action Education is 1.95 times less risky than Shanghai Metersbonwe. It trades about 0.06 of its potential returns per unit of risk. Shanghai Metersbonwe FashionAccessories is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 197.00 in Shanghai Metersbonwe FashionAccessories on September 12, 2024 and sell it today you would earn a total of 56.00 from holding Shanghai Metersbonwe FashionAccessories or generate 28.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Action Education vs. Shanghai Metersbonwe FashionAc
Performance |
| Timeline |
| Shanghai Action Education |
| Shanghai Metersbonwe |
Shanghai Action and Shanghai Metersbonwe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Action and Shanghai Metersbonwe
The main advantage of trading using opposite Shanghai Action and Shanghai Metersbonwe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Action position performs unexpectedly, Shanghai Metersbonwe 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 Metersbonwe will offset losses from the drop in Shanghai Metersbonwe's long position.| Shanghai Action vs. Lutian Machinery Co | Shanghai Action vs. PetroChina Co Ltd | Shanghai Action vs. Bank of China | Shanghai Action vs. Gansu Jiu Steel |
| Shanghai Metersbonwe vs. Lutian Machinery Co | Shanghai Metersbonwe vs. PetroChina Co Ltd | Shanghai Metersbonwe vs. Bank of China | Shanghai Metersbonwe vs. Gansu Jiu Steel |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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