Correlation Between Shanghai Newtouch and Heilongjiang Transport
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By analyzing existing cross correlation between Shanghai Newtouch Software and Heilongjiang Transport Development, you can compare the effects of market volatilities on Shanghai Newtouch and Heilongjiang Transport 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 Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Newtouch and Heilongjiang Transport.
Diversification Opportunities for Shanghai Newtouch and Heilongjiang Transport
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shanghai and Heilongjiang is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Newtouch Software and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport 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 Heilongjiang Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Transport has no effect on the direction of Shanghai Newtouch i.e., Shanghai Newtouch and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Shanghai Newtouch and Heilongjiang Transport
Assuming the 90 days trading horizon Shanghai Newtouch Software is expected to under-perform the Heilongjiang Transport. In addition to that, Shanghai Newtouch is 2.98 times more volatile than Heilongjiang Transport Development. It trades about -0.07 of its total potential returns per unit of risk. Heilongjiang Transport Development is currently generating about 0.22 per unit of volatility. If you would invest 328.00 in Heilongjiang Transport Development on January 4, 2025 and sell it today you would earn a total of 26.00 from holding Heilongjiang Transport Development or generate 7.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Newtouch Software vs. Heilongjiang Transport Develop
Performance |
| Timeline |
| Shanghai Newtouch |
| Heilongjiang Transport |
Shanghai Newtouch and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Newtouch and Heilongjiang Transport
The main advantage of trading using opposite Shanghai Newtouch and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Newtouch position performs unexpectedly, Heilongjiang Transport 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 Heilongjiang Transport will offset losses from the drop in Heilongjiang Transport's long position.| Shanghai Newtouch vs. Industrial and Commercial | Shanghai Newtouch vs. Agricultural Bank of | Shanghai Newtouch vs. China Construction Bank | Shanghai Newtouch vs. Bank of China |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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