Correlation Between HanS Laser and Shanghai Rongtai
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By analyzing existing cross correlation between HanS Laser Tech and Shanghai Rongtai Health, you can compare the effects of market volatilities on HanS Laser and Shanghai Rongtai 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 HanS Laser with a short position of Shanghai Rongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of HanS Laser and Shanghai Rongtai.
Diversification Opportunities for HanS Laser and Shanghai Rongtai
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between HanS and Shanghai is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding HanS Laser Tech and Shanghai Rongtai Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rongtai Health and HanS Laser 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 HanS Laser Tech are associated (or correlated) with Shanghai Rongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rongtai Health has no effect on the direction of HanS Laser i.e., HanS Laser and Shanghai Rongtai go up and down completely randomly.
Pair Corralation between HanS Laser and Shanghai Rongtai
Assuming the 90 days trading horizon HanS Laser Tech is expected to generate 0.9 times more return on investment than Shanghai Rongtai. However, HanS Laser Tech is 1.11 times less risky than Shanghai Rongtai. It trades about 0.07 of its potential returns per unit of risk. Shanghai Rongtai Health is currently generating about -0.1 per unit of risk. If you would invest 2,142 in HanS Laser Tech on September 3, 2024 and sell it today you would earn a total of 492.00 from holding HanS Laser Tech or generate 22.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HanS Laser Tech vs. Shanghai Rongtai Health
Performance |
| Timeline |
| HanS Laser Tech |
| Shanghai Rongtai Health |
HanS Laser and Shanghai Rongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HanS Laser and Shanghai Rongtai
The main advantage of trading using opposite HanS Laser and Shanghai Rongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HanS Laser position performs unexpectedly, Shanghai Rongtai 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 Rongtai will offset losses from the drop in Shanghai Rongtai's long position.| HanS Laser vs. Cultural Investment Holdings | HanS Laser vs. Gome Telecom Equipment | HanS Laser vs. Bus Online Co | HanS Laser vs. Holitech Technology Co |
| Shanghai Rongtai vs. PetroChina Co Ltd | Shanghai Rongtai vs. China Mobile Limited | Shanghai Rongtai vs. Industrial and Commercial | Shanghai Rongtai vs. China Life Insurance |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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