Correlation Between 159005 and Shanghai Sanyou
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By analyzing existing cross correlation between 159005 and Shanghai Sanyou Medical, you can compare the effects of market volatilities on 159005 and Shanghai Sanyou 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 Shanghai Sanyou. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and Shanghai Sanyou.
Diversification Opportunities for 159005 and Shanghai Sanyou
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 159005 and Shanghai is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding 159005 and Shanghai Sanyou Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Sanyou Medical 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 Shanghai Sanyou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Sanyou Medical has no effect on the direction of 159005 i.e., 159005 and Shanghai Sanyou go up and down completely randomly.
Pair Corralation between 159005 and Shanghai Sanyou
If you would invest 10,000 in 159005 on November 3, 2024 and sell it today you would earn a total of 0.00 from holding 159005 or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
159005 vs. Shanghai Sanyou Medical
Performance |
| Timeline |
| 159005 |
| Shanghai Sanyou Medical |
159005 and Shanghai Sanyou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and Shanghai Sanyou
The main advantage of trading using opposite 159005 and Shanghai Sanyou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 position performs unexpectedly, Shanghai Sanyou 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 Sanyou will offset losses from the drop in Shanghai Sanyou's long position.The idea behind 159005 and Shanghai Sanyou Medical 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.| Shanghai Sanyou vs. Industrial and Commercial | Shanghai Sanyou vs. China Construction Bank | Shanghai Sanyou vs. Agricultural Bank of | Shanghai Sanyou vs. Bank of China |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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