Correlation Between China Publishing and Shanghai 2345
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By analyzing existing cross correlation between China Publishing Media and Shanghai 2345 Network, you can compare the effects of market volatilities on China Publishing and Shanghai 2345 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 China Publishing with a short position of Shanghai 2345. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Publishing and Shanghai 2345.
Diversification Opportunities for China Publishing and Shanghai 2345
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Shanghai is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding China Publishing Media and Shanghai 2345 Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai 2345 Network and China 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 China Publishing Media are associated (or correlated) with Shanghai 2345. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai 2345 Network has no effect on the direction of China Publishing i.e., China Publishing and Shanghai 2345 go up and down completely randomly.
Pair Corralation between China Publishing and Shanghai 2345
Assuming the 90 days trading horizon China Publishing Media is expected to under-perform the Shanghai 2345. But the stock apears to be less risky and, when comparing its historical volatility, China Publishing Media is 2.28 times less risky than Shanghai 2345. The stock trades about -0.07 of its potential returns per unit of risk. The Shanghai 2345 Network is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 306.00 in Shanghai 2345 Network on September 20, 2024 and sell it today you would earn a total of 177.00 from holding Shanghai 2345 Network or generate 57.84% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
China Publishing Media vs. Shanghai 2345 Network
Performance |
Timeline |
China Publishing Media |
Shanghai 2345 Network |
China Publishing and Shanghai 2345 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Publishing and Shanghai 2345
The main advantage of trading using opposite China Publishing and Shanghai 2345 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Publishing position performs unexpectedly, Shanghai 2345 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 2345 will offset losses from the drop in Shanghai 2345's long position.China Publishing vs. Ming Yang Smart | China Publishing vs. 159681 | China Publishing vs. 159005 | China Publishing vs. Loctek Ergonomic Technology |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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