Correlation Between Hi Trend and Shanghai Broadband
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By analyzing existing cross correlation between Hi Trend TechCo and Shanghai Broadband Technology, you can compare the effects of market volatilities on Hi Trend and Shanghai Broadband 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 Hi Trend with a short position of Shanghai Broadband. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hi Trend and Shanghai Broadband.
Diversification Opportunities for Hi Trend and Shanghai Broadband
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 688391 and Shanghai is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Hi Trend TechCo and Shanghai Broadband Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Broadband and Hi Trend 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 Hi Trend TechCo are associated (or correlated) with Shanghai Broadband. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Broadband has no effect on the direction of Hi Trend i.e., Hi Trend and Shanghai Broadband go up and down completely randomly.
Pair Corralation between Hi Trend and Shanghai Broadband
Assuming the 90 days trading horizon Hi Trend is expected to generate 1.2 times less return on investment than Shanghai Broadband. In addition to that, Hi Trend is 2.04 times more volatile than Shanghai Broadband Technology. It trades about 0.12 of its total potential returns per unit of risk. Shanghai Broadband Technology is currently generating about 0.3 per unit of volatility. If you would invest 271.00 in Shanghai Broadband Technology on September 12, 2024 and sell it today you would earn a total of 134.00 from holding Shanghai Broadband Technology or generate 49.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Hi Trend TechCo vs. Shanghai Broadband Technology
Performance |
Timeline |
Hi Trend TechCo |
Shanghai Broadband |
Hi Trend and Shanghai Broadband Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hi Trend and Shanghai Broadband
The main advantage of trading using opposite Hi Trend and Shanghai Broadband positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hi Trend position performs unexpectedly, Shanghai Broadband 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 Broadband will offset losses from the drop in Shanghai Broadband's long position.Hi Trend vs. HeBei Jinniu Chemical | Hi Trend vs. Ningxia Younglight Chemicals | Hi Trend vs. Industrial Bank Co | Hi Trend vs. Gem Year Industrial Co |
Shanghai Broadband vs. Zijin Mining Group | Shanghai Broadband vs. Wanhua Chemical Group | Shanghai Broadband vs. Baoshan Iron Steel | Shanghai Broadband vs. Rongsheng Petrochemical 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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