Correlation Between Shandong Publishing and Shanghai Friendess
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Publishing Media and Shanghai Friendess Electronics, you can compare the effects of market volatilities on Shandong Publishing and Shanghai Friendess 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 Shanghai Friendess. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Publishing and Shanghai Friendess.
Diversification Opportunities for Shandong Publishing and Shanghai Friendess
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shandong and Shanghai is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Publishing Media and Shanghai Friendess Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Friendess 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 Shanghai Friendess. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Friendess has no effect on the direction of Shandong Publishing i.e., Shandong Publishing and Shanghai Friendess go up and down completely randomly.
Pair Corralation between Shandong Publishing and Shanghai Friendess
Assuming the 90 days trading horizon Shandong Publishing Media is expected to under-perform the Shanghai Friendess. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Publishing Media is 1.35 times less risky than Shanghai Friendess. The stock trades about -0.02 of its potential returns per unit of risk. The Shanghai Friendess Electronics is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 17,271 in Shanghai Friendess Electronics on September 26, 2024 and sell it today you would earn a total of 585.00 from holding Shanghai Friendess Electronics or generate 3.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Shandong Publishing Media vs. Shanghai Friendess Electronics
Performance |
Timeline |
Shandong Publishing Media |
Shanghai Friendess |
Shandong Publishing and Shanghai Friendess Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shandong Publishing and Shanghai Friendess
The main advantage of trading using opposite Shandong Publishing and Shanghai Friendess positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Publishing position performs unexpectedly, Shanghai Friendess 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 Friendess will offset losses from the drop in Shanghai Friendess' long position.Shandong Publishing vs. PetroChina Co Ltd | Shandong Publishing vs. China Mobile Limited | Shandong Publishing vs. CNOOC Limited | Shandong Publishing vs. Ping An Insurance |
Shanghai Friendess vs. Ming Yang Smart | Shanghai Friendess vs. 159681 | Shanghai Friendess vs. 159005 | Shanghai Friendess vs. Loctek Ergonomic Technology |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |