Correlation Between Shandong Publishing and Shandong Longquan
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By analyzing existing cross correlation between Shandong Publishing Media and Shandong Longquan Pipeline, you can compare the effects of market volatilities on Shandong Publishing and Shandong Longquan 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 Shandong Publishing with a short position of Shandong Longquan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Publishing and Shandong Longquan.
Diversification Opportunities for Shandong Publishing and Shandong Longquan
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and Shandong is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Publishing Media and Shandong Longquan Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Longquan and Shandong Publishing 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 Shandong Publishing Media are associated (or correlated) with Shandong Longquan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Longquan has no effect on the direction of Shandong Publishing i.e., Shandong Publishing and Shandong Longquan go up and down completely randomly.
Pair Corralation between Shandong Publishing and Shandong Longquan
Assuming the 90 days trading horizon Shandong Publishing Media is expected to under-perform the Shandong Longquan. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Publishing Media is 1.04 times less risky than Shandong Longquan. The stock trades about -0.05 of its potential returns per unit of risk. The Shandong Longquan Pipeline is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 449.00 in Shandong Longquan Pipeline on December 11, 2024 and sell it today you would earn a total of 3.00 from holding Shandong Longquan Pipeline or generate 0.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shandong Publishing Media vs. Shandong Longquan Pipeline
Performance |
Timeline |
Shandong Publishing Media |
Shandong Longquan |
Shandong Publishing and Shandong Longquan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shandong Publishing and Shandong Longquan
The main advantage of trading using opposite Shandong Publishing and Shandong Longquan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Publishing position performs unexpectedly, Shandong Longquan 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 Shandong Longquan will offset losses from the drop in Shandong Longquan's long position.Shandong Publishing vs. Kunshan Guoli Electronic | Shandong Publishing vs. Hangzhou Gisway Information | Shandong Publishing vs. AVCON Information Tech | Shandong Publishing vs. Xinya Electronic Co |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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