Correlation Between Shanghai V and NBTM New
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By analyzing existing cross correlation between Shanghai V Test Semiconductor and NBTM New Materials, you can compare the effects of market volatilities on Shanghai V and NBTM New 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 NBTM New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai V and NBTM New.
Diversification Opportunities for Shanghai V and NBTM New
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shanghai and NBTM is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai V Test Semiconductor and NBTM New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NBTM New Materials 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 NBTM New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NBTM New Materials has no effect on the direction of Shanghai V i.e., Shanghai V and NBTM New go up and down completely randomly.
Pair Corralation between Shanghai V and NBTM New
Assuming the 90 days trading horizon Shanghai V is expected to generate 1.83 times less return on investment than NBTM New. In addition to that, Shanghai V is 1.3 times more volatile than NBTM New Materials. It trades about 0.03 of its total potential returns per unit of risk. NBTM New Materials is currently generating about 0.06 per unit of volatility. If you would invest 1,133 in NBTM New Materials on October 18, 2024 and sell it today you would earn a total of 524.00 from holding NBTM New Materials or generate 46.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai V Test Semiconductor vs. NBTM New Materials
Performance |
| Timeline |
| Shanghai V Test |
| NBTM New Materials |
Shanghai V and NBTM New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai V and NBTM New
The main advantage of trading using opposite Shanghai V and NBTM New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai V position performs unexpectedly, NBTM New 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 NBTM New will offset losses from the drop in NBTM New's long position.| Shanghai V vs. Gifore Agricultural Machinery | Shanghai V vs. Allwin Telecommunication Co | Shanghai V vs. Dr Peng Telecom | Shanghai V vs. Huasi Agricultural Development |
| NBTM New vs. Peoples Insurance of | NBTM New vs. Shenwu Energy Saving | NBTM New vs. Financial Street Holdings | NBTM New vs. Qilu Bank Co |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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