Correlation Between Guangdong Shenglu and Shanghai OPM
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Shanghai OPM Biosciences, you can compare the effects of market volatilities on Guangdong Shenglu 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 Guangdong Shenglu with a short position of Shanghai OPM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Shanghai OPM.
Diversification Opportunities for Guangdong Shenglu and Shanghai OPM
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Shanghai is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic 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 Guangdong Shenglu 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 Guangdong Shenglu Telecommunication 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 Guangdong Shenglu i.e., Guangdong Shenglu and Shanghai OPM go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Shanghai OPM
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to generate 0.86 times more return on investment than Shanghai OPM. However, Guangdong Shenglu Telecommunication is 1.16 times less risky than Shanghai OPM. It trades about -0.01 of its potential returns per unit of risk. Shanghai OPM Biosciences is currently generating about -0.01 per unit of risk. If you would invest 1,022 in Guangdong Shenglu Telecommunication on September 1, 2024 and sell it today you would lose (296.00) from holding Guangdong Shenglu Telecommunication or give up 28.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Shanghai OPM Biosciences
Performance |
| Timeline |
| Guangdong Shenglu |
| Shanghai OPM Biosciences |
Guangdong Shenglu and Shanghai OPM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Shanghai OPM
The main advantage of trading using opposite Guangdong Shenglu and Shanghai OPM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu 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.| Guangdong Shenglu vs. Guocheng Mining Co | Guangdong Shenglu vs. Beijing SPC Environment | Guangdong Shenglu vs. Uroica Mining Safety | Guangdong Shenglu vs. Tongxing Environmental Protection |
| Shanghai OPM vs. Glodon Software Co | Shanghai OPM vs. Sunwave Communications Co | Shanghai OPM vs. Jonjee Hi tech Industrial | Shanghai OPM vs. Guangdong Shenglu Telecommunication |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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