Correlation Between Shantou Wanshun and Joincare Pharmaceutical
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By analyzing existing cross correlation between Shantou Wanshun Package and Joincare Pharmaceutical Group, you can compare the effects of market volatilities on Shantou Wanshun and Joincare Pharmaceutical 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 Shantou Wanshun with a short position of Joincare Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantou Wanshun and Joincare Pharmaceutical.
Diversification Opportunities for Shantou Wanshun and Joincare Pharmaceutical
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shantou and Joincare is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shantou Wanshun Package and Joincare Pharmaceutical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joincare Pharmaceutical and Shantou Wanshun 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 Shantou Wanshun Package are associated (or correlated) with Joincare Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joincare Pharmaceutical has no effect on the direction of Shantou Wanshun i.e., Shantou Wanshun and Joincare Pharmaceutical go up and down completely randomly.
Pair Corralation between Shantou Wanshun and Joincare Pharmaceutical
Assuming the 90 days trading horizon Shantou Wanshun Package is expected to generate 2.03 times more return on investment than Joincare Pharmaceutical. However, Shantou Wanshun is 2.03 times more volatile than Joincare Pharmaceutical Group. It trades about 0.01 of its potential returns per unit of risk. Joincare Pharmaceutical Group is currently generating about -0.01 per unit of risk. If you would invest 614.00 in Shantou Wanshun Package on September 4, 2024 and sell it today you would lose (39.00) from holding Shantou Wanshun Package or give up 6.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shantou Wanshun Package vs. Joincare Pharmaceutical Group
Performance |
| Timeline |
| Shantou Wanshun Package |
| Joincare Pharmaceutical |
Shantou Wanshun and Joincare Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shantou Wanshun and Joincare Pharmaceutical
The main advantage of trading using opposite Shantou Wanshun and Joincare Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantou Wanshun position performs unexpectedly, Joincare Pharmaceutical 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 Joincare Pharmaceutical will offset losses from the drop in Joincare Pharmaceutical's long position.| Shantou Wanshun vs. Zijin Mining Group | Shantou Wanshun vs. Wanhua Chemical Group | Shantou Wanshun vs. Baoshan Iron Steel | Shantou Wanshun vs. Rongsheng Petrochemical Co |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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