Correlation Between Masterwork Machinery and Shanghai Sanyou
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By analyzing existing cross correlation between Masterwork Machinery and Shanghai Sanyou Medical, you can compare the effects of market volatilities on Masterwork Machinery 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 Masterwork Machinery with a short position of Shanghai Sanyou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Masterwork Machinery and Shanghai Sanyou.
Diversification Opportunities for Masterwork Machinery and Shanghai Sanyou
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Masterwork and Shanghai is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Masterwork Machinery 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 Masterwork Machinery 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 Masterwork Machinery 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 Masterwork Machinery i.e., Masterwork Machinery and Shanghai Sanyou go up and down completely randomly.
Pair Corralation between Masterwork Machinery and Shanghai Sanyou
Assuming the 90 days trading horizon Masterwork Machinery is expected to under-perform the Shanghai Sanyou. But the stock apears to be less risky and, when comparing its historical volatility, Masterwork Machinery is 1.15 times less risky than Shanghai Sanyou. The stock trades about -0.47 of its potential returns per unit of risk. The Shanghai Sanyou Medical is currently generating about -0.25 of returns per unit of risk over similar time horizon. If you would invest 2,270 in Shanghai Sanyou Medical on October 12, 2024 and sell it today you would lose (359.00) from holding Shanghai Sanyou Medical or give up 15.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Masterwork Machinery vs. Shanghai Sanyou Medical
Performance |
| Timeline |
| Masterwork Machinery |
| Shanghai Sanyou Medical |
Masterwork Machinery and Shanghai Sanyou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Masterwork Machinery and Shanghai Sanyou
The main advantage of trading using opposite Masterwork Machinery and Shanghai Sanyou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Masterwork Machinery 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.| Masterwork Machinery vs. Guocheng Mining Co | Masterwork Machinery vs. Chengtun Mining Group | Masterwork Machinery vs. Suzhou Industrial Park | Masterwork Machinery vs. Guangzhou Haozhi Industrial |
| Shanghai Sanyou vs. Aba Chemicals Corp | Shanghai Sanyou vs. Anhui Huilong Agricultural | Shanghai Sanyou vs. Masterwork Machinery | Shanghai Sanyou vs. China Eastern Airlines |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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