Correlation Between SI TECH and Shanghai Putailai
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By analyzing existing cross correlation between SI TECH Information Technology and Shanghai Putailai New, you can compare the effects of market volatilities on SI TECH and Shanghai Putailai 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 SI TECH with a short position of Shanghai Putailai. Check out your portfolio center. Please also check ongoing floating volatility patterns of SI TECH and Shanghai Putailai.
Diversification Opportunities for SI TECH and Shanghai Putailai
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 300608 and Shanghai is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding SI TECH Information Technology and Shanghai Putailai New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Putailai New and SI TECH 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 SI TECH Information Technology are associated (or correlated) with Shanghai Putailai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Putailai New has no effect on the direction of SI TECH i.e., SI TECH and Shanghai Putailai go up and down completely randomly.
Pair Corralation between SI TECH and Shanghai Putailai
Assuming the 90 days trading horizon SI TECH is expected to generate 1.27 times less return on investment than Shanghai Putailai. In addition to that, SI TECH is 1.24 times more volatile than Shanghai Putailai New. It trades about 0.12 of its total potential returns per unit of risk. Shanghai Putailai New is currently generating about 0.19 per unit of volatility. If you would invest 1,067 in Shanghai Putailai New on September 23, 2024 and sell it today you would earn a total of 653.00 from holding Shanghai Putailai New or generate 61.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
SI TECH Information Technology vs. Shanghai Putailai New
Performance |
Timeline |
SI TECH Information |
Shanghai Putailai New |
SI TECH and Shanghai Putailai Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SI TECH and Shanghai Putailai
The main advantage of trading using opposite SI TECH and Shanghai Putailai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SI TECH position performs unexpectedly, Shanghai Putailai 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 Putailai will offset losses from the drop in Shanghai Putailai's long position.SI TECH vs. Railway Signal Communication | SI TECH vs. XinJiang GuoTong Pipeline | SI TECH vs. Linewell Software Co | SI TECH vs. Yuan Longping High tech |
Shanghai Putailai vs. Zijin Mining Group | Shanghai Putailai vs. Baoshan Iron Steel | Shanghai Putailai vs. Shandong Gold Mining | Shanghai Putailai 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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