Correlation Between Oriental Times and Shanxi Lanhua
Specify exactly 2 symbols:
By analyzing existing cross correlation between Oriental Times Media and Shanxi Lanhua Sci Tech, you can compare the effects of market volatilities on Oriental Times and Shanxi Lanhua 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 Oriental Times with a short position of Shanxi Lanhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Times and Shanxi Lanhua.
Diversification Opportunities for Oriental Times and Shanxi Lanhua
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Oriental and Shanxi is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Times Media and Shanxi Lanhua Sci Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanxi Lanhua Sci and Oriental Times 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 Oriental Times Media are associated (or correlated) with Shanxi Lanhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanxi Lanhua Sci has no effect on the direction of Oriental Times i.e., Oriental Times and Shanxi Lanhua go up and down completely randomly.
Pair Corralation between Oriental Times and Shanxi Lanhua
Assuming the 90 days trading horizon Oriental Times Media is expected to generate 1.66 times more return on investment than Shanxi Lanhua. However, Oriental Times is 1.66 times more volatile than Shanxi Lanhua Sci Tech. It trades about 0.19 of its potential returns per unit of risk. Shanxi Lanhua Sci Tech is currently generating about -0.03 per unit of risk. If you would invest 192.00 in Oriental Times Media on September 3, 2024 and sell it today you would earn a total of 260.00 from holding Oriental Times Media or generate 135.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oriental Times Media vs. Shanxi Lanhua Sci Tech
Performance |
| Timeline |
| Oriental Times Media |
| Shanxi Lanhua Sci |
Oriental Times and Shanxi Lanhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Times and Shanxi Lanhua
The main advantage of trading using opposite Oriental Times and Shanxi Lanhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Times position performs unexpectedly, Shanxi Lanhua 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 Shanxi Lanhua will offset losses from the drop in Shanxi Lanhua's long position.| Oriental Times vs. Agricultural Bank of | Oriental Times vs. China Construction Bank | Oriental Times vs. Postal Savings Bank | Oriental Times vs. Bank of Communications |
| Shanxi Lanhua vs. Gansu Jiu Steel | Shanxi Lanhua vs. Ming Yang Smart | Shanxi Lanhua vs. Aba Chemicals Corp | Shanxi Lanhua vs. Loctek Ergonomic Technology |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |