Correlation Between 159005 and Shandong Sanyuan
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By analyzing existing cross correlation between 159005 and Shandong Sanyuan Biotechnology, you can compare the effects of market volatilities on 159005 and Shandong Sanyuan 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 159005 with a short position of Shandong Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and Shandong Sanyuan.
Diversification Opportunities for 159005 and Shandong Sanyuan
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 159005 and Shandong is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding 159005 and Shandong Sanyuan Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sanyuan Bio and 159005 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 159005 are associated (or correlated) with Shandong Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sanyuan Bio has no effect on the direction of 159005 i.e., 159005 and Shandong Sanyuan go up and down completely randomly.
Pair Corralation between 159005 and Shandong Sanyuan
Assuming the 90 days trading horizon 159005 is expected to generate 22.06 times less return on investment than Shandong Sanyuan. But when comparing it to its historical volatility, 159005 is 90.58 times less risky than Shandong Sanyuan. It trades about 0.2 of its potential returns per unit of risk. Shandong Sanyuan Biotechnology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,506 in Shandong Sanyuan Biotechnology on September 28, 2024 and sell it today you would earn a total of 285.00 from holding Shandong Sanyuan Biotechnology or generate 11.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
159005 vs. Shandong Sanyuan Biotechnology
Performance |
| Timeline |
| 159005 |
| Shandong Sanyuan Bio |
159005 and Shandong Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and Shandong Sanyuan
The main advantage of trading using opposite 159005 and Shandong Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 position performs unexpectedly, Shandong Sanyuan 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 Shandong Sanyuan will offset losses from the drop in Shandong Sanyuan's long position.The idea behind 159005 and Shandong Sanyuan Biotechnology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Shandong Sanyuan vs. Ming Yang Smart | Shandong Sanyuan vs. 159681 | Shandong Sanyuan vs. 159005 | Shandong Sanyuan 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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