Correlation Between Everjoy Health and Shanghai Rongtai
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By analyzing existing cross correlation between Everjoy Health Group and Shanghai Rongtai Health, you can compare the effects of market volatilities on Everjoy Health 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 Everjoy Health with a short position of Shanghai Rongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everjoy Health and Shanghai Rongtai.
Diversification Opportunities for Everjoy Health and Shanghai Rongtai
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Everjoy and Shanghai is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Everjoy Health Group 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 Everjoy Health 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 Everjoy Health Group 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 Everjoy Health i.e., Everjoy Health and Shanghai Rongtai go up and down completely randomly.
Pair Corralation between Everjoy Health and Shanghai Rongtai
Assuming the 90 days trading horizon Everjoy Health Group is expected to generate 1.48 times more return on investment than Shanghai Rongtai. However, Everjoy Health is 1.48 times more volatile than Shanghai Rongtai Health. It trades about 0.18 of its potential returns per unit of risk. Shanghai Rongtai Health is currently generating about 0.11 per unit of risk. If you would invest 372.00 in Everjoy Health Group on September 12, 2024 and sell it today you would earn a total of 40.00 from holding Everjoy Health Group or generate 10.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Everjoy Health Group vs. Shanghai Rongtai Health
Performance |
| Timeline |
| Everjoy Health Group |
| Shanghai Rongtai Health |
Everjoy Health and Shanghai Rongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Everjoy Health and Shanghai Rongtai
The main advantage of trading using opposite Everjoy Health and Shanghai Rongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everjoy Health 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.| Everjoy Health vs. Agricultural Bank of | Everjoy Health vs. Industrial and Commercial | Everjoy Health vs. Bank of China | Everjoy Health vs. PetroChina Co Ltd |
| Shanghai Rongtai vs. Lutian Machinery Co | Shanghai Rongtai vs. PetroChina Co Ltd | Shanghai Rongtai vs. Bank of China | Shanghai Rongtai vs. Gansu Jiu Steel |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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