Correlation Between Shanghai Action and Road Environment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Action Education and Road Environment Technology, you can compare the effects of market volatilities on Shanghai Action and Road Environment 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 Road Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Action and Road Environment.
Diversification Opportunities for Shanghai Action and Road Environment
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shanghai and Road is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Action Education and Road Environment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Road Environment Tec 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 Road Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Road Environment Tec has no effect on the direction of Shanghai Action i.e., Shanghai Action and Road Environment go up and down completely randomly.
Pair Corralation between Shanghai Action and Road Environment
Assuming the 90 days trading horizon Shanghai Action Education is expected to generate 0.8 times more return on investment than Road Environment. However, Shanghai Action Education is 1.25 times less risky than Road Environment. It trades about 0.1 of its potential returns per unit of risk. Road Environment Technology is currently generating about -0.14 per unit of risk. If you would invest 3,425 in Shanghai Action Education on October 31, 2024 and sell it today you would earn a total of 128.00 from holding Shanghai Action Education or generate 3.74% 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. Road Environment Technology
Performance |
| Timeline |
| Shanghai Action Education |
| Road Environment Tec |
Shanghai Action and Road Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Action and Road Environment
The main advantage of trading using opposite Shanghai Action and Road Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Action position performs unexpectedly, Road Environment 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 Road Environment will offset losses from the drop in Road Environment's long position.| Shanghai Action vs. Jiajia Food Group | Shanghai Action vs. Anhui Huaheng Biotechnology | Shanghai Action vs. Ningbo MedicalSystem Biotechnology | Shanghai Action vs. New Hope Dairy |
| Road Environment vs. Fujian Oriental Silver | Road Environment vs. Keda Clean Energy | Road Environment vs. China Life Insurance | Road Environment vs. Hainan Mining 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |