Correlation Between Shanghai Broadband and Anhui Jiuhuashan

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Shanghai Broadband and Anhui Jiuhuashan at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Shanghai Broadband and Anhui Jiuhuashan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shanghai Broadband Technology and Anhui Jiuhuashan Tourism, you can compare the effects of market volatilities on Shanghai Broadband and Anhui Jiuhuashan 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 Broadband with a short position of Anhui Jiuhuashan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Broadband and Anhui Jiuhuashan.

Diversification Opportunities for Shanghai Broadband and Anhui Jiuhuashan

-0.14
  Correlation Coefficient

Good diversification

The 3 months correlation between Shanghai and Anhui is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Broadband Technology and Anhui Jiuhuashan Tourism in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Jiuhuashan Tourism and Shanghai Broadband 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 Broadband Technology are associated (or correlated) with Anhui Jiuhuashan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Jiuhuashan Tourism has no effect on the direction of Shanghai Broadband i.e., Shanghai Broadband and Anhui Jiuhuashan go up and down completely randomly.

Pair Corralation between Shanghai Broadband and Anhui Jiuhuashan

Assuming the 90 days trading horizon Shanghai Broadband Technology is expected to generate 1.53 times more return on investment than Anhui Jiuhuashan. However, Shanghai Broadband is 1.53 times more volatile than Anhui Jiuhuashan Tourism. It trades about -0.04 of its potential returns per unit of risk. Anhui Jiuhuashan Tourism is currently generating about -0.11 per unit of risk. If you would invest  406.00  in Shanghai Broadband Technology on September 13, 2025 and sell it today you would lose (24.00) from holding Shanghai Broadband Technology or give up 5.91% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Shanghai Broadband Technology  vs.  Anhui Jiuhuashan Tourism

 Performance 
       Timeline  
Shanghai Broadband 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Shanghai Broadband Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Shanghai Broadband is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Anhui Jiuhuashan Tourism 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Anhui Jiuhuashan Tourism has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Shanghai Broadband and Anhui Jiuhuashan Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Shanghai Broadband and Anhui Jiuhuashan

The main advantage of trading using opposite Shanghai Broadband and Anhui Jiuhuashan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Broadband position performs unexpectedly, Anhui Jiuhuashan 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 Anhui Jiuhuashan will offset losses from the drop in Anhui Jiuhuashan's long position.
The idea behind Shanghai Broadband Technology and Anhui Jiuhuashan Tourism pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

Other Complementary Tools

Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Fundamental Analysis
View fundamental data based on most recent published financial statements
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities