Correlation Between Shanghai Action and Hubei Yingtong
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By analyzing existing cross correlation between Shanghai Action Education and Hubei Yingtong Telecommunication, you can compare the effects of market volatilities on Shanghai Action and Hubei Yingtong 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 Hubei Yingtong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Action and Hubei Yingtong.
Diversification Opportunities for Shanghai Action and Hubei Yingtong
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shanghai and Hubei is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Action Education and Hubei Yingtong Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Yingtong Telec 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 Hubei Yingtong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Yingtong Telec has no effect on the direction of Shanghai Action i.e., Shanghai Action and Hubei Yingtong go up and down completely randomly.
Pair Corralation between Shanghai Action and Hubei Yingtong
Assuming the 90 days trading horizon Shanghai Action Education is expected to generate 0.34 times more return on investment than Hubei Yingtong. However, Shanghai Action Education is 2.96 times less risky than Hubei Yingtong. It trades about 0.04 of its potential returns per unit of risk. Hubei Yingtong Telecommunication is currently generating about -0.02 per unit of risk. If you would invest 3,616 in Shanghai Action Education on October 10, 2024 and sell it today you would earn a total of 54.00 from holding Shanghai Action Education or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Action Education vs. Hubei Yingtong Telecommunicati
Performance |
| Timeline |
| Shanghai Action Education |
| Hubei Yingtong Telec |
Shanghai Action and Hubei Yingtong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Action and Hubei Yingtong
The main advantage of trading using opposite Shanghai Action and Hubei Yingtong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Action position performs unexpectedly, Hubei Yingtong 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 Hubei Yingtong will offset losses from the drop in Hubei Yingtong's long position.| Shanghai Action vs. Fiberhome Telecommunication Technologies | Shanghai Action vs. Servyou Software Group | Shanghai Action vs. Eastern Communications Co | Shanghai Action vs. Dareway Software Co |
| Hubei Yingtong vs. Shandong Publishing Media | Hubei Yingtong vs. Jinhe Biotechnology Co | Hubei Yingtong vs. Ciwen Media Co | Hubei Yingtong vs. JiShi Media Co |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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