Correlation Between Shanghai Yaoji and Hainan Pearl
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By analyzing existing cross correlation between Shanghai Yaoji Playing and Hainan Pearl River, you can compare the effects of market volatilities on Shanghai Yaoji and Hainan Pearl 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 Yaoji with a short position of Hainan Pearl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yaoji and Hainan Pearl.
Diversification Opportunities for Shanghai Yaoji and Hainan Pearl
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Hainan is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yaoji Playing and Hainan Pearl River in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Pearl River and Shanghai Yaoji 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 Yaoji Playing are associated (or correlated) with Hainan Pearl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Pearl River has no effect on the direction of Shanghai Yaoji i.e., Shanghai Yaoji and Hainan Pearl go up and down completely randomly.
Pair Corralation between Shanghai Yaoji and Hainan Pearl
Assuming the 90 days trading horizon Shanghai Yaoji Playing is expected to generate 1.98 times more return on investment than Hainan Pearl. However, Shanghai Yaoji is 1.98 times more volatile than Hainan Pearl River. It trades about 0.03 of its potential returns per unit of risk. Hainan Pearl River is currently generating about -0.02 per unit of risk. If you would invest 2,702 in Shanghai Yaoji Playing on December 25, 2024 and sell it today you would earn a total of 73.00 from holding Shanghai Yaoji Playing or generate 2.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Shanghai Yaoji Playing vs. Hainan Pearl River
Performance |
Timeline |
Shanghai Yaoji Playing |
Hainan Pearl River |
Shanghai Yaoji and Hainan Pearl Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shanghai Yaoji and Hainan Pearl
The main advantage of trading using opposite Shanghai Yaoji and Hainan Pearl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yaoji position performs unexpectedly, Hainan Pearl 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 Hainan Pearl will offset losses from the drop in Hainan Pearl's long position.Shanghai Yaoji vs. China Southern Power | Shanghai Yaoji vs. Chengdu Xinzhu RoadBridge | Shanghai Yaoji vs. Keda Clean Energy | Shanghai Yaoji vs. Highbroad Advanced Material |
Hainan Pearl vs. Yingde Greatchem Chemicals | Hainan Pearl vs. BlueFocus Communication Group | Hainan Pearl vs. Dalian Zeus Entertainment | Hainan Pearl vs. Shandong Polymer Biochemicals |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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