Correlation Between Shanghai CEO and China Asset
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By analyzing existing cross correlation between Shanghai CEO Environmental and China Asset Management, you can compare the effects of market volatilities on Shanghai CEO and China Asset 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 China Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai CEO and China Asset.
Diversification Opportunities for Shanghai CEO and China Asset
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shanghai and China is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai CEO Environmental and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset Management 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 China Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of Shanghai CEO i.e., Shanghai CEO and China Asset go up and down completely randomly.
Pair Corralation between Shanghai CEO and China Asset
Assuming the 90 days trading horizon Shanghai CEO Environmental is expected to generate 53.35 times more return on investment than China Asset. However, Shanghai CEO is 53.35 times more volatile than China Asset Management. It trades about 0.04 of its potential returns per unit of risk. China Asset Management is currently generating about 0.09 per unit of risk. If you would invest 2,287 in Shanghai CEO Environmental on October 13, 2024 and sell it today you would lose (1,491) from holding Shanghai CEO Environmental or give up 65.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai CEO Environmental vs. China Asset Management
Performance |
| Timeline |
| Shanghai CEO Environ |
| China Asset Management |
Shanghai CEO and China Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai CEO and China Asset
The main advantage of trading using opposite Shanghai CEO and China Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai CEO position performs unexpectedly, China Asset 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 China Asset will offset losses from the drop in China Asset's long position.| Shanghai CEO vs. Beijing Mainstreets Investment | Shanghai CEO vs. Tsingtao Brewery Co | Shanghai CEO vs. PKU HealthCare Corp | Shanghai CEO vs. China Asset Management |
| China Asset vs. Qiaoyin Environmental Tech | China Asset vs. Dawning Information Industry | China Asset vs. ButOne Information Corp | China Asset vs. Tongxing Environmental Protection |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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