Correlation Between Shanghai V-Test and China Longyuan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai V Test Semiconductor and China Longyuan Power, you can compare the effects of market volatilities on Shanghai V-Test and China Longyuan 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 V-Test with a short position of China Longyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai V-Test and China Longyuan.
Diversification Opportunities for Shanghai V-Test and China Longyuan
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shanghai and China is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai V Test Semiconductor and China Longyuan Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Longyuan Power and Shanghai V-Test 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 V Test Semiconductor are associated (or correlated) with China Longyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Longyuan Power has no effect on the direction of Shanghai V-Test i.e., Shanghai V-Test and China Longyuan go up and down completely randomly.
Pair Corralation between Shanghai V-Test and China Longyuan
Assuming the 90 days trading horizon Shanghai V Test Semiconductor is expected to generate 3.42 times more return on investment than China Longyuan. However, Shanghai V-Test is 3.42 times more volatile than China Longyuan Power. It trades about 0.34 of its potential returns per unit of risk. China Longyuan Power is currently generating about 0.16 per unit of risk. If you would invest 6,055 in Shanghai V Test Semiconductor on November 8, 2024 and sell it today you would earn a total of 1,581 from holding Shanghai V Test Semiconductor or generate 26.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Shanghai V Test Semiconductor vs. China Longyuan Power
Performance |
| Timeline |
| Shanghai V Test |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| China Longyuan Power |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shanghai V-Test and China Longyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai V-Test and China Longyuan
The main advantage of trading using opposite Shanghai V-Test and China Longyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai V-Test position performs unexpectedly, China Longyuan 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 Longyuan will offset losses from the drop in China Longyuan's long position.The idea behind Shanghai V Test Semiconductor and China Longyuan Power pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |