Correlation Between Threes Company and Shanghai Xinhua
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By analyzing existing cross correlation between Threes Company Media and Shanghai Xinhua Media, you can compare the effects of market volatilities on Threes Company and Shanghai Xinhua 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 Threes Company with a short position of Shanghai Xinhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Threes Company and Shanghai Xinhua.
Diversification Opportunities for Threes Company and Shanghai Xinhua
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Threes and Shanghai is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Threes Company Media and Shanghai Xinhua Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Xinhua Media and Threes Company 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 Threes Company Media are associated (or correlated) with Shanghai Xinhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Xinhua Media has no effect on the direction of Threes Company i.e., Threes Company and Shanghai Xinhua go up and down completely randomly.
Pair Corralation between Threes Company and Shanghai Xinhua
Assuming the 90 days trading horizon Threes Company Media is expected to under-perform the Shanghai Xinhua. In addition to that, Threes Company is 1.29 times more volatile than Shanghai Xinhua Media. It trades about -0.21 of its total potential returns per unit of risk. Shanghai Xinhua Media is currently generating about -0.23 per unit of volatility. If you would invest 705.00 in Shanghai Xinhua Media on October 23, 2024 and sell it today you would lose (97.00) from holding Shanghai Xinhua Media or give up 13.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Threes Company Media vs. Shanghai Xinhua Media
Performance |
| Timeline |
| Threes Company |
| Shanghai Xinhua Media |
Threes Company and Shanghai Xinhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Threes Company and Shanghai Xinhua
The main advantage of trading using opposite Threes Company and Shanghai Xinhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Threes Company position performs unexpectedly, Shanghai Xinhua 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 Xinhua will offset losses from the drop in Shanghai Xinhua's long position.| Threes Company vs. Ming Yang Smart | Threes Company vs. 159681 | Threes Company vs. 159005 | Threes Company vs. Loctek Ergonomic Technology |
| Shanghai Xinhua vs. Ping An Insurance | Shanghai Xinhua vs. China National Software | Shanghai Xinhua vs. Suzhou Mingzhi Technology | Shanghai Xinhua vs. Jiangsu Hoperun Software |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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