Correlation Between Eastern Communications and Shanghai Zhangjiang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Eastern Communications Co and Shanghai Zhangjiang Hi Tech, you can compare the effects of market volatilities on Eastern Communications and Shanghai Zhangjiang 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 Eastern Communications with a short position of Shanghai Zhangjiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Communications and Shanghai Zhangjiang.
Diversification Opportunities for Eastern Communications and Shanghai Zhangjiang
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eastern and Shanghai is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Communications Co and Shanghai Zhangjiang Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Zhangjiang and Eastern Communications 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 Eastern Communications Co are associated (or correlated) with Shanghai Zhangjiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Zhangjiang has no effect on the direction of Eastern Communications i.e., Eastern Communications and Shanghai Zhangjiang go up and down completely randomly.
Pair Corralation between Eastern Communications and Shanghai Zhangjiang
Assuming the 90 days trading horizon Eastern Communications is expected to generate 2.57 times less return on investment than Shanghai Zhangjiang. But when comparing it to its historical volatility, Eastern Communications Co is 1.9 times less risky than Shanghai Zhangjiang. It trades about 0.05 of its potential returns per unit of risk. Shanghai Zhangjiang Hi Tech is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,657 in Shanghai Zhangjiang Hi Tech on August 29, 2024 and sell it today you would earn a total of 145.00 from holding Shanghai Zhangjiang Hi Tech or generate 5.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Communications Co vs. Shanghai Zhangjiang Hi Tech
Performance |
| Timeline |
| Eastern Communications |
| Shanghai Zhangjiang |
Eastern Communications and Shanghai Zhangjiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Communications and Shanghai Zhangjiang
The main advantage of trading using opposite Eastern Communications and Shanghai Zhangjiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Communications position performs unexpectedly, Shanghai Zhangjiang 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 Shanghai Zhangjiang will offset losses from the drop in Shanghai Zhangjiang's long position.| Eastern Communications vs. Guangdong Jinma Entertainment | Eastern Communications vs. Huaibei Mining Holdings | Eastern Communications vs. Zijin Mining Group | Eastern Communications vs. Xinjiang Baodi Mining |
| Shanghai Zhangjiang vs. Industrial and Commercial | Shanghai Zhangjiang vs. China Construction Bank | Shanghai Zhangjiang vs. Bank of China | Shanghai Zhangjiang vs. Agricultural Bank of |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |