Correlation Between American Balanced and Shantui Construction
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By analyzing existing cross correlation between American Balanced and Shantui Construction Machinery, you can compare the effects of market volatilities on American Balanced and Shantui Construction 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 American Balanced with a short position of Shantui Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Balanced and Shantui Construction.
Diversification Opportunities for American Balanced and Shantui Construction
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between American and Shantui is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding American Balanced and Shantui Construction Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shantui Construction and American Balanced 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 American Balanced are associated (or correlated) with Shantui Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shantui Construction has no effect on the direction of American Balanced i.e., American Balanced and Shantui Construction go up and down completely randomly.
Pair Corralation between American Balanced and Shantui Construction
Assuming the 90 days horizon American Balanced is expected to generate 6.78 times less return on investment than Shantui Construction. But when comparing it to its historical volatility, American Balanced is 5.16 times less risky than Shantui Construction. It trades about 0.07 of its potential returns per unit of risk. Shantui Construction Machinery is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 577.00 in Shantui Construction Machinery on November 3, 2024 and sell it today you would earn a total of 426.00 from holding Shantui Construction Machinery or generate 73.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.14% |
| Values | Daily Returns |
American Balanced vs. Shantui Construction Machinery
Performance |
| Timeline |
| American Balanced |
| Shantui Construction |
American Balanced and Shantui Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Balanced and Shantui Construction
The main advantage of trading using opposite American Balanced and Shantui Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Balanced position performs unexpectedly, Shantui Construction 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 Shantui Construction will offset losses from the drop in Shantui Construction's long position.| American Balanced vs. Income Fund Of | American Balanced vs. Capital Income Builder | American Balanced vs. Capital World Growth | American Balanced vs. Growth Fund 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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