Correlation Between Shanghai Action and Shandong Iron
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By analyzing existing cross correlation between Shanghai Action Education and Shandong Iron and, you can compare the effects of market volatilities on Shanghai Action and Shandong Iron 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 Shandong Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Action and Shandong Iron.
Diversification Opportunities for Shanghai Action and Shandong Iron
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shanghai and Shandong is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Action Education and Shandong Iron and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Iron 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 Shandong Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Iron has no effect on the direction of Shanghai Action i.e., Shanghai Action and Shandong Iron go up and down completely randomly.
Pair Corralation between Shanghai Action and Shandong Iron
Assuming the 90 days trading horizon Shanghai Action Education is expected to under-perform the Shandong Iron. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Action Education is 1.06 times less risky than Shandong Iron. The stock trades about -0.03 of its potential returns per unit of risk. The Shandong Iron and is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 140.00 in Shandong Iron and on October 12, 2024 and sell it today you would lose (3.00) from holding Shandong Iron and or give up 2.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Action Education vs. Shandong Iron and
Performance |
| Timeline |
| Shanghai Action Education |
| Shandong Iron |
Shanghai Action and Shandong Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Action and Shandong Iron
The main advantage of trading using opposite Shanghai Action and Shandong Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Action position performs unexpectedly, Shandong Iron 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 Shandong Iron will offset losses from the drop in Shandong Iron's long position.| Shanghai Action vs. Eit Environmental Development | Shanghai Action vs. Cangzhou Mingzhu Plastic | Shanghai Action vs. GreenTech Environmental Co | Shanghai Action vs. Hangzhou Gaoxin Rubber |
| Shandong Iron vs. Heilongjiang Publishing Media | Shandong Iron vs. Shanghai Action Education | Shandong Iron vs. Glodon Software Co | Shandong Iron vs. Inspur Software 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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