Correlation Between Teijin and Shanghai Industrial
Can any of the company-specific risk be diversified away by investing in both Teijin and Shanghai Industrial at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Teijin and Shanghai Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teijin and Shanghai Industrial Holdings, you can compare the effects of market volatilities on Teijin and Shanghai Industrial 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 Teijin with a short position of Shanghai Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teijin and Shanghai Industrial.
Diversification Opportunities for Teijin and Shanghai Industrial
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Teijin and Shanghai is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Teijin and Shanghai Industrial Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Industrial and Teijin 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 Teijin are associated (or correlated) with Shanghai Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Industrial has no effect on the direction of Teijin i.e., Teijin and Shanghai Industrial go up and down completely randomly.
Pair Corralation between Teijin and Shanghai Industrial
If you would invest 115.00 in Shanghai Industrial Holdings on September 20, 2024 and sell it today you would earn a total of 0.00 from holding Shanghai Industrial Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
Teijin vs. Shanghai Industrial Holdings
Performance |
| Timeline |
| Teijin |
| Shanghai Industrial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Teijin and Shanghai Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teijin and Shanghai Industrial
The main advantage of trading using opposite Teijin and Shanghai Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teijin position performs unexpectedly, Shanghai Industrial 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 Industrial will offset losses from the drop in Shanghai Industrial's long position.| Teijin vs. Toray Industries ADR | Teijin vs. Nitto Denko Corp | Teijin vs. NSK Ltd ADR | Teijin vs. Secom Co Ltd |
| Shanghai Industrial vs. Teijin | Shanghai Industrial vs. Ayala Corp ADR | Shanghai Industrial vs. CK Hutchison Holdings | Shanghai Industrial vs. 1847 Holdings LLC |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |