Correlation Between Shanghai Newtouch and Guangdong Silvere
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By analyzing existing cross correlation between Shanghai Newtouch Software and Guangdong Silvere Sci, you can compare the effects of market volatilities on Shanghai Newtouch and Guangdong Silvere 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 Guangdong Silvere. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Newtouch and Guangdong Silvere.
Diversification Opportunities for Shanghai Newtouch and Guangdong Silvere
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Guangdong is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Newtouch Software and Guangdong Silvere Sci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Silvere Sci 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 Guangdong Silvere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Silvere Sci has no effect on the direction of Shanghai Newtouch i.e., Shanghai Newtouch and Guangdong Silvere go up and down completely randomly.
Pair Corralation between Shanghai Newtouch and Guangdong Silvere
Assuming the 90 days trading horizon Shanghai Newtouch Software is expected to under-perform the Guangdong Silvere. In addition to that, Shanghai Newtouch is 1.07 times more volatile than Guangdong Silvere Sci. It trades about -0.36 of its total potential returns per unit of risk. Guangdong Silvere Sci is currently generating about 0.04 per unit of volatility. If you would invest 599.00 in Guangdong Silvere Sci on October 23, 2024 and sell it today you would earn a total of 11.00 from holding Guangdong Silvere Sci or generate 1.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Newtouch Software vs. Guangdong Silvere Sci
Performance |
| Timeline |
| Shanghai Newtouch |
| Guangdong Silvere Sci |
Shanghai Newtouch and Guangdong Silvere Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Newtouch and Guangdong Silvere
The main advantage of trading using opposite Shanghai Newtouch and Guangdong Silvere positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Newtouch position performs unexpectedly, Guangdong Silvere 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 Silvere will offset losses from the drop in Guangdong Silvere's long position.| Shanghai Newtouch vs. Aba Chemicals Corp | Shanghai Newtouch vs. HeNan Splendor Science | Shanghai Newtouch vs. Hubei Xingfa Chemicals | Shanghai Newtouch vs. Dymatic Chemicals |
| Guangdong Silvere vs. Zijin Mining Group | Guangdong Silvere vs. Wanhua Chemical Group | Guangdong Silvere vs. Baoshan Iron Steel | Guangdong Silvere vs. Shandong Gold Mining |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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