Correlation Between Shanghai Shuixing and Yoantion Industrial
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By analyzing existing cross correlation between Shanghai Shuixing Home and Yoantion Industrial IncLtd, you can compare the effects of market volatilities on Shanghai Shuixing and Yoantion Industrial 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 Shanghai Shuixing with a short position of Yoantion Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shuixing and Yoantion Industrial.
Diversification Opportunities for Shanghai Shuixing and Yoantion Industrial
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Yoantion is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shuixing Home and Yoantion Industrial IncLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yoantion Industrial and Shanghai Shuixing 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 Shanghai Shuixing Home are associated (or correlated) with Yoantion Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yoantion Industrial has no effect on the direction of Shanghai Shuixing i.e., Shanghai Shuixing and Yoantion Industrial go up and down completely randomly.
Pair Corralation between Shanghai Shuixing and Yoantion Industrial
Assuming the 90 days trading horizon Shanghai Shuixing Home is expected to generate 0.61 times more return on investment than Yoantion Industrial. However, Shanghai Shuixing Home is 1.64 times less risky than Yoantion Industrial. It trades about 0.04 of its potential returns per unit of risk. Yoantion Industrial IncLtd is currently generating about 0.02 per unit of risk. If you would invest 1,279 in Shanghai Shuixing Home on September 25, 2024 and sell it today you would earn a total of 400.00 from holding Shanghai Shuixing Home or generate 31.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shanghai Shuixing Home vs. Yoantion Industrial IncLtd
Performance |
Timeline |
Shanghai Shuixing Home |
Yoantion Industrial |
Shanghai Shuixing and Yoantion Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shanghai Shuixing and Yoantion Industrial
The main advantage of trading using opposite Shanghai Shuixing and Yoantion Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shuixing position performs unexpectedly, Yoantion Industrial 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 Yoantion Industrial will offset losses from the drop in Yoantion Industrial's long position.Shanghai Shuixing vs. Cambricon Technologies Corp | Shanghai Shuixing vs. Loongson Technology Corp | Shanghai Shuixing vs. Shenzhen Fortune Trend | Shanghai Shuixing vs. Chongqing Road Bridge |
Yoantion Industrial vs. Bank of China | Yoantion Industrial vs. Kweichow Moutai Co | Yoantion Industrial vs. PetroChina Co Ltd | Yoantion Industrial vs. Bank of Communications |
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 CEOs Directory module to screen CEOs from public companies around the world.
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