Correlation Between Shanghai Action and Shanghai Broadband
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Action Education and Shanghai Broadband Technology, you can compare the effects of market volatilities on Shanghai Action and Shanghai Broadband 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 Broadband. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Action and Shanghai Broadband.
Diversification Opportunities for Shanghai Action and Shanghai Broadband
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shanghai and Shanghai is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Action Education and Shanghai Broadband Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Broadband 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 Broadband. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Broadband has no effect on the direction of Shanghai Action i.e., Shanghai Action and Shanghai Broadband go up and down completely randomly.
Pair Corralation between Shanghai Action and Shanghai Broadband
Assuming the 90 days trading horizon Shanghai Action Education is expected to generate 0.7 times more return on investment than Shanghai Broadband. However, Shanghai Action Education is 1.43 times less risky than Shanghai Broadband. It trades about -0.07 of its potential returns per unit of risk. Shanghai Broadband Technology is currently generating about -0.16 per unit of risk. If you would invest 3,711 in Shanghai Action Education on October 17, 2024 and sell it today you would lose (160.00) from holding Shanghai Action Education or give up 4.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Action Education vs. Shanghai Broadband Technology
Performance |
| Timeline |
| Shanghai Action Education |
| Shanghai Broadband |
Shanghai Action and Shanghai Broadband Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Action and Shanghai Broadband
The main advantage of trading using opposite Shanghai Action and Shanghai Broadband positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Action position performs unexpectedly, Shanghai Broadband 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 Broadband will offset losses from the drop in Shanghai Broadband's long position.| Shanghai Action vs. Xiangyu Medical Co | Shanghai Action vs. Guangdong Jingyi Metal | Shanghai Action vs. Winner Medical Co | Shanghai Action vs. Rising Nonferrous Metals |
| Shanghai Broadband vs. Shanghai Action Education | Shanghai Broadband vs. Montage Technology Co | Shanghai Broadband vs. HUAQIN TECHNOLOGY LTD | Shanghai Broadband vs. Guangdong Qunxing Toys |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Transaction History View history of all your transactions and understand their impact on performance |