Correlation Between Shanghai Metersbonwe and Jiangsu Bioperfectus
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By analyzing existing cross correlation between Shanghai Metersbonwe FashionAccessories and Jiangsu Bioperfectus Technologies, you can compare the effects of market volatilities on Shanghai Metersbonwe and Jiangsu Bioperfectus 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 Shanghai Metersbonwe with a short position of Jiangsu Bioperfectus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Metersbonwe and Jiangsu Bioperfectus.
Diversification Opportunities for Shanghai Metersbonwe and Jiangsu Bioperfectus
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shanghai and Jiangsu is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Metersbonwe FashionAc and Jiangsu Bioperfectus Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Bioperfectus and Shanghai Metersbonwe 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 Shanghai Metersbonwe FashionAccessories are associated (or correlated) with Jiangsu Bioperfectus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Bioperfectus has no effect on the direction of Shanghai Metersbonwe i.e., Shanghai Metersbonwe and Jiangsu Bioperfectus go up and down completely randomly.
Pair Corralation between Shanghai Metersbonwe and Jiangsu Bioperfectus
Assuming the 90 days trading horizon Shanghai Metersbonwe FashionAccessories is expected to generate 1.41 times more return on investment than Jiangsu Bioperfectus. However, Shanghai Metersbonwe is 1.41 times more volatile than Jiangsu Bioperfectus Technologies. It trades about 0.11 of its potential returns per unit of risk. Jiangsu Bioperfectus Technologies is currently generating about -0.15 per unit of risk. If you would invest 170.00 in Shanghai Metersbonwe FashionAccessories on August 31, 2024 and sell it today you would earn a total of 14.00 from holding Shanghai Metersbonwe FashionAccessories or generate 8.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Metersbonwe FashionAc vs. Jiangsu Bioperfectus Technolog
Performance |
| Timeline |
| Shanghai Metersbonwe |
| Jiangsu Bioperfectus |
Shanghai Metersbonwe and Jiangsu Bioperfectus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Metersbonwe and Jiangsu Bioperfectus
The main advantage of trading using opposite Shanghai Metersbonwe and Jiangsu Bioperfectus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Metersbonwe position performs unexpectedly, Jiangsu Bioperfectus 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 Jiangsu Bioperfectus will offset losses from the drop in Jiangsu Bioperfectus' long position.| Shanghai Metersbonwe vs. China State Construction | Shanghai Metersbonwe vs. China Merchants Shekou | Shanghai Metersbonwe vs. Huafa Industrial Co | Shanghai Metersbonwe vs. China International Capital |
| Jiangsu Bioperfectus vs. Fujian Boss Software | Jiangsu Bioperfectus vs. Shanghai Metersbonwe FashionAccessories | Jiangsu Bioperfectus vs. Ping An Insurance | Jiangsu Bioperfectus vs. Yindu Kitchen Equipment |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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