Correlation Between Shanghai CEO and Shenzhen Hifuture
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By analyzing existing cross correlation between Shanghai CEO Environmental and Shenzhen Hifuture Electric, you can compare the effects of market volatilities on Shanghai CEO and Shenzhen Hifuture 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 CEO with a short position of Shenzhen Hifuture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai CEO and Shenzhen Hifuture.
Diversification Opportunities for Shanghai CEO and Shenzhen Hifuture
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shanghai and Shenzhen is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai CEO Environmental and Shenzhen Hifuture Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Hifuture and Shanghai CEO 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 CEO Environmental are associated (or correlated) with Shenzhen Hifuture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Hifuture has no effect on the direction of Shanghai CEO i.e., Shanghai CEO and Shenzhen Hifuture go up and down completely randomly.
Pair Corralation between Shanghai CEO and Shenzhen Hifuture
Assuming the 90 days trading horizon Shanghai CEO Environmental is expected to generate 0.93 times more return on investment than Shenzhen Hifuture. However, Shanghai CEO Environmental is 1.07 times less risky than Shenzhen Hifuture. It trades about 0.16 of its potential returns per unit of risk. Shenzhen Hifuture Electric is currently generating about 0.05 per unit of risk. If you would invest 769.00 in Shanghai CEO Environmental on September 2, 2024 and sell it today you would earn a total of 241.00 from holding Shanghai CEO Environmental or generate 31.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.31% |
| Values | Daily Returns |
Shanghai CEO Environmental vs. Shenzhen Hifuture Electric
Performance |
| Timeline |
| Shanghai CEO Environ |
| Shenzhen Hifuture |
Shanghai CEO and Shenzhen Hifuture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai CEO and Shenzhen Hifuture
The main advantage of trading using opposite Shanghai CEO and Shenzhen Hifuture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai CEO position performs unexpectedly, Shenzhen Hifuture 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 Shenzhen Hifuture will offset losses from the drop in Shenzhen Hifuture's long position.| Shanghai CEO vs. Cultural Investment Holdings | Shanghai CEO vs. Gome Telecom Equipment | Shanghai CEO vs. Bus Online Co | Shanghai CEO vs. Holitech Technology Co |
| Shenzhen Hifuture vs. Kweichow Moutai Co | Shenzhen Hifuture vs. Shenzhen Mindray Bio Medical | Shenzhen Hifuture vs. Jiangsu Pacific Quartz | Shenzhen Hifuture vs. G bits Network Technology |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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