Correlation Between Shanghai Newtouch and Hangzhou Pinming
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By analyzing existing cross correlation between Shanghai Newtouch Software and Hangzhou Pinming Software, you can compare the effects of market volatilities on Shanghai Newtouch and Hangzhou Pinming 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 Hangzhou Pinming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Newtouch and Hangzhou Pinming.
Diversification Opportunities for Shanghai Newtouch and Hangzhou Pinming
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Hangzhou is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Newtouch Software and Hangzhou Pinming Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Pinming Software 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 Hangzhou Pinming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Pinming Software has no effect on the direction of Shanghai Newtouch i.e., Shanghai Newtouch and Hangzhou Pinming go up and down completely randomly.
Pair Corralation between Shanghai Newtouch and Hangzhou Pinming
Assuming the 90 days trading horizon Shanghai Newtouch Software is expected to under-perform the Hangzhou Pinming. In addition to that, Shanghai Newtouch is 1.19 times more volatile than Hangzhou Pinming Software. It trades about -0.02 of its total potential returns per unit of risk. Hangzhou Pinming Software is currently generating about 0.0 per unit of volatility. If you would invest 2,734 in Hangzhou Pinming Software on October 16, 2024 and sell it today you would lose (529.00) from holding Hangzhou Pinming Software or give up 19.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Newtouch Software vs. Hangzhou Pinming Software
Performance |
| Timeline |
| Shanghai Newtouch |
| Hangzhou Pinming Software |
Shanghai Newtouch and Hangzhou Pinming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Newtouch and Hangzhou Pinming
The main advantage of trading using opposite Shanghai Newtouch and Hangzhou Pinming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Newtouch position performs unexpectedly, Hangzhou Pinming 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 Hangzhou Pinming will offset losses from the drop in Hangzhou Pinming's long position.| Shanghai Newtouch vs. China World Trade | Shanghai Newtouch vs. Anyang Iron Steel | Shanghai Newtouch vs. Grandblue Environment Co | Shanghai Newtouch vs. Zhengzhou Qianweiyangchu Food |
| Hangzhou Pinming vs. Beijing Yanjing Brewery | Hangzhou Pinming vs. Vats Liquor Chain | Hangzhou Pinming vs. Tonghua Grape Wine | Hangzhou Pinming vs. Sportsoul Co Ltd |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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