Correlation Between Loongson Technology and Shanghai Yaoji
Specify exactly 2 symbols:
By analyzing existing cross correlation between Loongson Technology Corp and Shanghai Yaoji Playing, you can compare the effects of market volatilities on Loongson Technology and Shanghai Yaoji 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 Loongson Technology with a short position of Shanghai Yaoji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loongson Technology and Shanghai Yaoji.
Diversification Opportunities for Loongson Technology and Shanghai Yaoji
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Loongson and Shanghai is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Loongson Technology Corp and Shanghai Yaoji Playing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yaoji Playing and Loongson Technology 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 Loongson Technology Corp are associated (or correlated) with Shanghai Yaoji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yaoji Playing has no effect on the direction of Loongson Technology i.e., Loongson Technology and Shanghai Yaoji go up and down completely randomly.
Pair Corralation between Loongson Technology and Shanghai Yaoji
Assuming the 90 days trading horizon Loongson Technology is expected to generate 1.48 times less return on investment than Shanghai Yaoji. But when comparing it to its historical volatility, Loongson Technology Corp is 1.08 times less risky than Shanghai Yaoji. It trades about 0.17 of its potential returns per unit of risk. Shanghai Yaoji Playing is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 2,645 in Shanghai Yaoji Playing on August 30, 2024 and sell it today you would earn a total of 654.00 from holding Shanghai Yaoji Playing or generate 24.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loongson Technology Corp vs. Shanghai Yaoji Playing
Performance |
| Timeline |
| Loongson Technology Corp |
| Shanghai Yaoji Playing |
Loongson Technology and Shanghai Yaoji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loongson Technology and Shanghai Yaoji
The main advantage of trading using opposite Loongson Technology and Shanghai Yaoji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loongson Technology position performs unexpectedly, Shanghai Yaoji 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 Yaoji will offset losses from the drop in Shanghai Yaoji's long position.| Loongson Technology vs. Chengdu Spaceon Electronics | Loongson Technology vs. HaiXin Foods Co | Loongson Technology vs. New Hope Dairy | Loongson Technology vs. Shanghai CEO Environmental |
| Shanghai Yaoji vs. Cambricon Technologies Corp | Shanghai Yaoji vs. Loongson Technology Corp | Shanghai Yaoji vs. Shenzhen Fortune Trend | Shanghai Yaoji vs. Chongqing Road Bridge |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |