Correlation Between Shaanxi Lighte and Chinese Universe
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By analyzing existing cross correlation between Shaanxi Lighte Optoelectronics and Chinese Universe Publishing, you can compare the effects of market volatilities on Shaanxi Lighte and Chinese Universe 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 Shaanxi Lighte with a short position of Chinese Universe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Lighte and Chinese Universe.
Diversification Opportunities for Shaanxi Lighte and Chinese Universe
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shaanxi and Chinese is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Lighte Optoelectronics and Chinese Universe Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chinese Universe Pub and Shaanxi Lighte 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 Shaanxi Lighte Optoelectronics are associated (or correlated) with Chinese Universe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chinese Universe Pub has no effect on the direction of Shaanxi Lighte i.e., Shaanxi Lighte and Chinese Universe go up and down completely randomly.
Pair Corralation between Shaanxi Lighte and Chinese Universe
Assuming the 90 days trading horizon Shaanxi Lighte Optoelectronics is expected to generate 1.67 times more return on investment than Chinese Universe. However, Shaanxi Lighte is 1.67 times more volatile than Chinese Universe Publishing. It trades about -0.12 of its potential returns per unit of risk. Chinese Universe Publishing is currently generating about -0.33 per unit of risk. If you would invest 2,240 in Shaanxi Lighte Optoelectronics on October 24, 2024 and sell it today you would lose (162.00) from holding Shaanxi Lighte Optoelectronics or give up 7.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Lighte Optoelectronics vs. Chinese Universe Publishing
Performance |
| Timeline |
| Shaanxi Lighte Optoe |
| Chinese Universe Pub |
Shaanxi Lighte and Chinese Universe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Lighte and Chinese Universe
The main advantage of trading using opposite Shaanxi Lighte and Chinese Universe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Lighte position performs unexpectedly, Chinese Universe 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 Chinese Universe will offset losses from the drop in Chinese Universe's long position.| Shaanxi Lighte vs. Eastern Communications Co | Shaanxi Lighte vs. Chinese Universe Publishing | Shaanxi Lighte vs. Shanghai CEO Environmental | Shaanxi Lighte vs. Beijing Kaiwen Education |
| Chinese Universe vs. Hangzhou Gisway Information | Chinese Universe vs. Shenzhen SDG Information | Chinese Universe vs. Xinjiang Sailing Information | Chinese Universe vs. Zhuhai Comleader Information |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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