Correlation Between Shanghai Suochen and Beijing UniStrong
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By analyzing existing cross correlation between Shanghai Suochen Information and Beijing UniStrong Science, you can compare the effects of market volatilities on Shanghai Suochen and Beijing UniStrong 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 Suochen with a short position of Beijing UniStrong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Suochen and Beijing UniStrong.
Diversification Opportunities for Shanghai Suochen and Beijing UniStrong
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Beijing is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Suochen Information and Beijing UniStrong Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing UniStrong Science and Shanghai Suochen 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 Suochen Information are associated (or correlated) with Beijing UniStrong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing UniStrong Science has no effect on the direction of Shanghai Suochen i.e., Shanghai Suochen and Beijing UniStrong go up and down completely randomly.
Pair Corralation between Shanghai Suochen and Beijing UniStrong
Assuming the 90 days trading horizon Shanghai Suochen Information is expected to generate 1.18 times more return on investment than Beijing UniStrong. However, Shanghai Suochen is 1.18 times more volatile than Beijing UniStrong Science. It trades about -0.04 of its potential returns per unit of risk. Beijing UniStrong Science is currently generating about -0.18 per unit of risk. If you would invest 6,068 in Shanghai Suochen Information on October 22, 2024 and sell it today you would lose (225.00) from holding Shanghai Suochen Information or give up 3.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Suochen Information vs. Beijing UniStrong Science
Performance |
| Timeline |
| Shanghai Suochen Inf |
| Beijing UniStrong Science |
Shanghai Suochen and Beijing UniStrong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Suochen and Beijing UniStrong
The main advantage of trading using opposite Shanghai Suochen and Beijing UniStrong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Suochen position performs unexpectedly, Beijing UniStrong 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 Beijing UniStrong will offset losses from the drop in Beijing UniStrong's long position.| Shanghai Suochen vs. Chongqing Changan Automobile | Shanghai Suochen vs. Super Dragon Engineering Plastics | Shanghai Suochen vs. Jiangnan Mould Plastic | Shanghai Suochen vs. Guangzhou Automobile Group |
| Beijing UniStrong vs. Dongguan Tarry Electronics | Beijing UniStrong vs. Iat Automobile Technology | Beijing UniStrong vs. Fuzhou Rockchip Electronics | Beijing UniStrong vs. Leyard Optoelectronic |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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