Correlation Between Xiandai Investment and Shanghai OPM
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By analyzing existing cross correlation between Xiandai Investment Co and Shanghai OPM Biosciences, you can compare the effects of market volatilities on Xiandai Investment 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 Xiandai Investment with a short position of Shanghai OPM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and Shanghai OPM.
Diversification Opportunities for Xiandai Investment and Shanghai OPM
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xiandai and Shanghai is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment Co 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 Xiandai Investment 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 Xiandai Investment Co 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 Xiandai Investment i.e., Xiandai Investment and Shanghai OPM go up and down completely randomly.
Pair Corralation between Xiandai Investment and Shanghai OPM
Assuming the 90 days trading horizon Xiandai Investment is expected to generate 2.18 times less return on investment than Shanghai OPM. But when comparing it to its historical volatility, Xiandai Investment Co is 2.18 times less risky than Shanghai OPM. It trades about 0.15 of its potential returns per unit of risk. Shanghai OPM Biosciences is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 3,340 in Shanghai OPM Biosciences on September 13, 2024 and sell it today you would earn a total of 1,048 from holding Shanghai OPM Biosciences or generate 31.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 97.73% |
| Values | Daily Returns |
Xiandai Investment Co vs. Shanghai OPM Biosciences
Performance |
| Timeline |
| Xiandai Investment |
| Shanghai OPM Biosciences |
Xiandai Investment and Shanghai OPM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiandai Investment and Shanghai OPM
The main advantage of trading using opposite Xiandai Investment and Shanghai OPM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai Investment 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.| Xiandai Investment vs. Industrial and Commercial | Xiandai Investment vs. Kweichow Moutai Co | Xiandai Investment vs. Agricultural Bank of | Xiandai Investment vs. China Mobile Limited |
| Shanghai OPM vs. Western Superconducting Tech | Shanghai OPM vs. Shenzhen Centralcon Investment | Shanghai OPM vs. Kuangda Technology Group | Shanghai OPM vs. Changchun UP Optotech |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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