Correlation Between Zhuhai Comleader and Shanghai Electric
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By analyzing existing cross correlation between Zhuhai Comleader Information and Shanghai Electric Group, you can compare the effects of market volatilities on Zhuhai Comleader and Shanghai Electric 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 Zhuhai Comleader with a short position of Shanghai Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhuhai Comleader and Shanghai Electric.
Diversification Opportunities for Zhuhai Comleader and Shanghai Electric
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhuhai and Shanghai is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Zhuhai Comleader Information and Shanghai Electric Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Electric and Zhuhai Comleader 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 Zhuhai Comleader Information are associated (or correlated) with Shanghai Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Electric has no effect on the direction of Zhuhai Comleader i.e., Zhuhai Comleader and Shanghai Electric go up and down completely randomly.
Pair Corralation between Zhuhai Comleader and Shanghai Electric
Assuming the 90 days trading horizon Zhuhai Comleader Information is expected to generate 0.61 times more return on investment than Shanghai Electric. However, Zhuhai Comleader Information is 1.65 times less risky than Shanghai Electric. It trades about 0.14 of its potential returns per unit of risk. Shanghai Electric Group is currently generating about -0.12 per unit of risk. If you would invest 1,929 in Zhuhai Comleader Information on September 13, 2024 and sell it today you would earn a total of 182.00 from holding Zhuhai Comleader Information or generate 9.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhuhai Comleader Information vs. Shanghai Electric Group
Performance |
| Timeline |
| Zhuhai Comleader Inf |
| Shanghai Electric |
Zhuhai Comleader and Shanghai Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhuhai Comleader and Shanghai Electric
The main advantage of trading using opposite Zhuhai Comleader and Shanghai Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhuhai Comleader position performs unexpectedly, Shanghai Electric 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 Electric will offset losses from the drop in Shanghai Electric's long position.| Zhuhai Comleader vs. Industrial and Commercial | Zhuhai Comleader vs. China Construction Bank | Zhuhai Comleader vs. Bank of China | Zhuhai Comleader vs. Agricultural Bank of |
| Shanghai Electric vs. Lootom Telcovideo Network | Shanghai Electric vs. Zhejiang Yayi Metal | Shanghai Electric vs. Rising Nonferrous Metals | Shanghai Electric vs. Tianshan Aluminum Group |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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