Correlation Between Changjiang Jinggong and Shanghai Action
Specify exactly 2 symbols:
By analyzing existing cross correlation between Changjiang Jinggong Steel and Shanghai Action Education, you can compare the effects of market volatilities on Changjiang Jinggong and Shanghai Action 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 Changjiang Jinggong with a short position of Shanghai Action. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Jinggong and Shanghai Action.
Diversification Opportunities for Changjiang Jinggong and Shanghai Action
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Changjiang and Shanghai is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Jinggong Steel and Shanghai Action Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Action Education and Changjiang Jinggong 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 Changjiang Jinggong Steel are associated (or correlated) with Shanghai Action. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Action Education has no effect on the direction of Changjiang Jinggong i.e., Changjiang Jinggong and Shanghai Action go up and down completely randomly.
Pair Corralation between Changjiang Jinggong and Shanghai Action
Assuming the 90 days trading horizon Changjiang Jinggong Steel is expected to under-perform the Shanghai Action. But the stock apears to be less risky and, when comparing its historical volatility, Changjiang Jinggong Steel is 1.43 times less risky than Shanghai Action. The stock trades about -0.43 of its potential returns per unit of risk. The Shanghai Action Education is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 3,616 in Shanghai Action Education on October 8, 2024 and sell it today you would lose (58.00) from holding Shanghai Action Education or give up 1.6% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Changjiang Jinggong Steel vs. Shanghai Action Education
Performance |
Timeline |
Changjiang Jinggong Steel |
Shanghai Action Education |
Changjiang Jinggong and Shanghai Action Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Changjiang Jinggong and Shanghai Action
The main advantage of trading using opposite Changjiang Jinggong and Shanghai Action positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Jinggong position performs unexpectedly, Shanghai Action 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 Action will offset losses from the drop in Shanghai Action's long position.Changjiang Jinggong vs. Agricultural Bank of | Changjiang Jinggong vs. Industrial and Commercial | Changjiang Jinggong vs. Bank of China | Changjiang Jinggong vs. PetroChina Co Ltd |
Shanghai Action vs. Ningbo Construction Co | Shanghai Action vs. Yunnan Jianzhijia Health Chain | Shanghai Action vs. Long Yuan Construction | Shanghai Action vs. Anhui Huaren Health |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |