Correlation Between Shantui Construction and Southern PublishingMedia
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By analyzing existing cross correlation between Shantui Construction Machinery and Southern PublishingMedia Co, you can compare the effects of market volatilities on Shantui Construction and Southern PublishingMedia 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 Shantui Construction with a short position of Southern PublishingMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantui Construction and Southern PublishingMedia.
Diversification Opportunities for Shantui Construction and Southern PublishingMedia
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shantui and Southern is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Shantui Construction Machinery and Southern PublishingMedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern PublishingMedia and Shantui Construction 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 Shantui Construction Machinery are associated (or correlated) with Southern PublishingMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern PublishingMedia has no effect on the direction of Shantui Construction i.e., Shantui Construction and Southern PublishingMedia go up and down completely randomly.
Pair Corralation between Shantui Construction and Southern PublishingMedia
Assuming the 90 days trading horizon Shantui Construction Machinery is expected to generate 0.91 times more return on investment than Southern PublishingMedia. However, Shantui Construction Machinery is 1.1 times less risky than Southern PublishingMedia. It trades about 0.15 of its potential returns per unit of risk. Southern PublishingMedia Co is currently generating about 0.07 per unit of risk. If you would invest 764.00 in Shantui Construction Machinery on September 26, 2024 and sell it today you would earn a total of 218.00 from holding Shantui Construction Machinery or generate 28.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Shantui Construction Machinery vs. Southern PublishingMedia Co
Performance |
Timeline |
Shantui Construction |
Southern PublishingMedia |
Shantui Construction and Southern PublishingMedia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shantui Construction and Southern PublishingMedia
The main advantage of trading using opposite Shantui Construction and Southern PublishingMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantui Construction position performs unexpectedly, Southern PublishingMedia 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 Southern PublishingMedia will offset losses from the drop in Southern PublishingMedia's long position.Shantui Construction vs. Industrial and Commercial | Shantui Construction vs. Agricultural Bank of | Shantui Construction vs. China Construction Bank | Shantui Construction vs. Bank of China |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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