Correlation Between Shanghai Action and Chengdu B
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By analyzing existing cross correlation between Shanghai Action Education and Chengdu B ray Media, you can compare the effects of market volatilities on Shanghai Action and Chengdu B 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 Chengdu B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Action and Chengdu B.
Diversification Opportunities for Shanghai Action and Chengdu B
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shanghai and Chengdu is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Action Education and Chengdu B ray Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu B ray 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 Chengdu B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu B ray has no effect on the direction of Shanghai Action i.e., Shanghai Action and Chengdu B go up and down completely randomly.
Pair Corralation between Shanghai Action and Chengdu B
Assuming the 90 days trading horizon Shanghai Action Education is expected to generate 0.54 times more return on investment than Chengdu B. However, Shanghai Action Education is 1.86 times less risky than Chengdu B. It trades about 0.06 of its potential returns per unit of risk. Chengdu B ray Media is currently generating about 0.03 per unit of risk. If you would invest 3,258 in Shanghai Action Education on September 27, 2024 and sell it today you would earn a total of 102.00 from holding Shanghai Action Education or generate 3.13% 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. Chengdu B ray Media
Performance |
| Timeline |
| Shanghai Action Education |
| Chengdu B ray |
Shanghai Action and Chengdu B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Action and Chengdu B
The main advantage of trading using opposite Shanghai Action and Chengdu B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Action position performs unexpectedly, Chengdu B 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 Chengdu B will offset losses from the drop in Chengdu B's long position.| Shanghai Action vs. Railway Signal Communication | Shanghai Action vs. Zhonghong Pulin Medical | Shanghai Action vs. Lepu Medical Tech | Shanghai Action vs. Jilin Jlu Communication |
| Chengdu B vs. Agricultural Bank of | Chengdu B vs. Chinese Universe Publishing | Chengdu B vs. HeNan Splendor Science | Chengdu B vs. Shanghai Action Education |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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