Correlation Between Shanghai V and Guangdong Shenglu
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By analyzing existing cross correlation between Shanghai V Test Semiconductor and Guangdong Shenglu Telecommunication, you can compare the effects of market volatilities on Shanghai V and Guangdong Shenglu 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 with a short position of Guangdong Shenglu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai V and Guangdong Shenglu.
Diversification Opportunities for Shanghai V and Guangdong Shenglu
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Guangdong is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai V Test Semiconductor and Guangdong Shenglu Telecommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Shenglu and Shanghai V 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 Guangdong Shenglu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Shenglu has no effect on the direction of Shanghai V i.e., Shanghai V and Guangdong Shenglu go up and down completely randomly.
Pair Corralation between Shanghai V and Guangdong Shenglu
Assuming the 90 days trading horizon Shanghai V Test Semiconductor is expected to generate 0.98 times more return on investment than Guangdong Shenglu. However, Shanghai V Test Semiconductor is 1.02 times less risky than Guangdong Shenglu. It trades about -0.03 of its potential returns per unit of risk. Guangdong Shenglu Telecommunication is currently generating about -0.19 per unit of risk. If you would invest 6,233 in Shanghai V Test Semiconductor on October 21, 2024 and sell it today you would lose (163.00) from holding Shanghai V Test Semiconductor or give up 2.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai V Test Semiconductor vs. Guangdong Shenglu Telecommunic
Performance |
| Timeline |
| Shanghai V Test |
| Guangdong Shenglu |
Shanghai V and Guangdong Shenglu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai V and Guangdong Shenglu
The main advantage of trading using opposite Shanghai V and Guangdong Shenglu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai V position performs unexpectedly, Guangdong Shenglu 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 Guangdong Shenglu will offset losses from the drop in Guangdong Shenglu's long position.| Shanghai V vs. Songz Automobile Air | Shanghai V vs. Haima Automobile Group | Shanghai V vs. Anhui Jianghuai Automobile | Shanghai V vs. Beijing Kingsoft Office |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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