Correlation Between Shanghai Broadband and Road Environment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Broadband Technology and Road Environment Technology, you can compare the effects of market volatilities on Shanghai Broadband and Road Environment 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 Broadband with a short position of Road Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Broadband and Road Environment.
Diversification Opportunities for Shanghai Broadband and Road Environment
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Road is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Broadband Technology and Road Environment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Road Environment Tec and Shanghai Broadband 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 Broadband Technology are associated (or correlated) with Road Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Road Environment Tec has no effect on the direction of Shanghai Broadband i.e., Shanghai Broadband and Road Environment go up and down completely randomly.
Pair Corralation between Shanghai Broadband and Road Environment
Assuming the 90 days trading horizon Shanghai Broadband Technology is expected to under-perform the Road Environment. In addition to that, Shanghai Broadband is 1.18 times more volatile than Road Environment Technology. It trades about -0.15 of its total potential returns per unit of risk. Road Environment Technology is currently generating about 0.12 per unit of volatility. If you would invest 1,322 in Road Environment Technology on September 20, 2024 and sell it today you would earn a total of 81.00 from holding Road Environment Technology or generate 6.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Shanghai Broadband Technology vs. Road Environment Technology
Performance |
Timeline |
Shanghai Broadband |
Road Environment Tec |
Shanghai Broadband and Road Environment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shanghai Broadband and Road Environment
The main advantage of trading using opposite Shanghai Broadband and Road Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Broadband position performs unexpectedly, Road Environment 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 Road Environment will offset losses from the drop in Road Environment's long position.Shanghai Broadband vs. Zijin Mining Group | Shanghai Broadband vs. Wanhua Chemical Group | Shanghai Broadband vs. Baoshan Iron Steel | Shanghai Broadband vs. Shandong Gold Mining |
Road Environment vs. Biwin Storage Technology | Road Environment vs. PetroChina Co Ltd | Road Environment vs. Industrial and Commercial | Road Environment vs. China Construction Bank |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
Commodity Directory Find actively traded commodities issued by global exchanges | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |