Correlation Between Shenzhen Centralcon and Shanghai OPM
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Shanghai OPM Biosciences, you can compare the effects of market volatilities on Shenzhen Centralcon and Shanghai OPM 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 Shenzhen Centralcon with a short position of Shanghai OPM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Shanghai OPM.
Diversification Opportunities for Shenzhen Centralcon and Shanghai OPM
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Shanghai is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Shanghai OPM Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai OPM Biosciences and Shenzhen Centralcon 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 Shenzhen Centralcon Investment are associated (or correlated) with Shanghai OPM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai OPM Biosciences has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Shanghai OPM go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Shanghai OPM
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to generate 0.85 times more return on investment than Shanghai OPM. However, Shenzhen Centralcon Investment is 1.17 times less risky than Shanghai OPM. It trades about 0.23 of its potential returns per unit of risk. Shanghai OPM Biosciences is currently generating about -0.06 per unit of risk. If you would invest 522.00 in Shenzhen Centralcon Investment on September 14, 2024 and sell it today you would earn a total of 65.00 from holding Shenzhen Centralcon Investment or generate 12.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Centralcon Investment vs. Shanghai OPM Biosciences
Performance |
| Timeline |
| Shenzhen Centralcon |
| Shanghai OPM Biosciences |
Shenzhen Centralcon and Shanghai OPM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Shanghai OPM
The main advantage of trading using opposite Shenzhen Centralcon and Shanghai OPM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Shanghai OPM 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 OPM will offset losses from the drop in Shanghai OPM's long position.| Shenzhen Centralcon vs. China Life Insurance | Shenzhen Centralcon vs. Cinda Securities Co | Shenzhen Centralcon vs. Piotech Inc A | Shenzhen Centralcon vs. Dongxing Sec Co |
| Shanghai OPM vs. Beijing Yanjing Brewery | Shanghai OPM vs. ZYF Lopsking Aluminum | Shanghai OPM vs. Spring Airlines Co | Shanghai OPM vs. Hefei Metalforming Mach |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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