Correlation Between Henan Shuanghui and Shanghai OPM
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By analyzing existing cross correlation between Henan Shuanghui Investment and Shanghai OPM Biosciences, you can compare the effects of market volatilities on Henan Shuanghui 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 Henan Shuanghui with a short position of Shanghai OPM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Shanghai OPM.
Diversification Opportunities for Henan Shuanghui and Shanghai OPM
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Henan and Shanghai is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui 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 Henan Shuanghui 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 Henan Shuanghui 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 Henan Shuanghui i.e., Henan Shuanghui and Shanghai OPM go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Shanghai OPM
Assuming the 90 days trading horizon Henan Shuanghui is expected to generate 31.93 times less return on investment than Shanghai OPM. But when comparing it to its historical volatility, Henan Shuanghui Investment is 2.57 times less risky than Shanghai OPM. It trades about 0.01 of its potential returns per unit of risk. Shanghai OPM Biosciences is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,558 in Shanghai OPM Biosciences on September 1, 2024 and sell it today you would earn a total of 1,058 from holding Shanghai OPM Biosciences or generate 29.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Henan Shuanghui Investment vs. Shanghai OPM Biosciences
Performance |
| Timeline |
| Henan Shuanghui Inve |
| Shanghai OPM Biosciences |
Henan Shuanghui and Shanghai OPM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and Shanghai OPM
The main advantage of trading using opposite Henan Shuanghui and Shanghai OPM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui 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.| Henan Shuanghui vs. Dymatic Chemicals | Henan Shuanghui vs. Do Fluoride Chemicals Co | Henan Shuanghui vs. Hengdian Entertainment Co | Henan Shuanghui vs. Fujian Anjoy Foods |
| Shanghai OPM vs. Glodon Software Co | Shanghai OPM vs. Sunwave Communications Co | Shanghai OPM vs. Jonjee Hi tech Industrial | Shanghai OPM vs. Guangdong Shenglu Telecommunication |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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