Correlation Between Shanghai Newtouch and Bohai Leasing
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By analyzing existing cross correlation between Shanghai Newtouch Software and Bohai Leasing Co, you can compare the effects of market volatilities on Shanghai Newtouch and Bohai Leasing 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 Newtouch with a short position of Bohai Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Newtouch and Bohai Leasing.
Diversification Opportunities for Shanghai Newtouch and Bohai Leasing
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Bohai is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Newtouch Software and Bohai Leasing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bohai Leasing and Shanghai Newtouch 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 Newtouch Software are associated (or correlated) with Bohai Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bohai Leasing has no effect on the direction of Shanghai Newtouch i.e., Shanghai Newtouch and Bohai Leasing go up and down completely randomly.
Pair Corralation between Shanghai Newtouch and Bohai Leasing
Assuming the 90 days trading horizon Shanghai Newtouch Software is expected to generate 1.76 times more return on investment than Bohai Leasing. However, Shanghai Newtouch is 1.76 times more volatile than Bohai Leasing Co. It trades about 0.04 of its potential returns per unit of risk. Bohai Leasing Co is currently generating about 0.05 per unit of risk. If you would invest 1,246 in Shanghai Newtouch Software on October 29, 2024 and sell it today you would earn a total of 605.00 from holding Shanghai Newtouch Software or generate 48.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Newtouch Software vs. Bohai Leasing Co
Performance |
| Timeline |
| Shanghai Newtouch |
| Bohai Leasing |
Shanghai Newtouch and Bohai Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Newtouch and Bohai Leasing
The main advantage of trading using opposite Shanghai Newtouch and Bohai Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Newtouch position performs unexpectedly, Bohai Leasing 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 Bohai Leasing will offset losses from the drop in Bohai Leasing's long position.| Shanghai Newtouch vs. Cultural Investment Holdings | Shanghai Newtouch vs. Shengda Mining Co | Shanghai Newtouch vs. Jiangsu Yueda Investment | Shanghai Newtouch vs. Shanghai Yanpu Metal |
| Bohai Leasing vs. Fiberhome Telecommunication Technologies | Bohai Leasing vs. Zoy Home Furnishing | Bohai Leasing vs. DO Home Collection | Bohai Leasing vs. Hubei Forbon Technology |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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