Correlation Between Guangdong Silvere and Shandong Sanyuan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Silvere Sci and Shandong Sanyuan Biotechnology, you can compare the effects of market volatilities on Guangdong Silvere 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 Guangdong Silvere with a short position of Shandong Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Silvere and Shandong Sanyuan.
Diversification Opportunities for Guangdong Silvere and Shandong Sanyuan
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Shandong is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Silvere Sci 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 Guangdong Silvere 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 Silvere Sci 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 Guangdong Silvere i.e., Guangdong Silvere and Shandong Sanyuan go up and down completely randomly.
Pair Corralation between Guangdong Silvere and Shandong Sanyuan
Assuming the 90 days trading horizon Guangdong Silvere Sci is expected to generate 1.47 times more return on investment than Shandong Sanyuan. However, Guangdong Silvere is 1.47 times more volatile than Shandong Sanyuan Biotechnology. It trades about 0.01 of its potential returns per unit of risk. Shandong Sanyuan Biotechnology is currently generating about -0.02 per unit of risk. If you would invest 547.00 in Guangdong Silvere Sci on October 16, 2024 and sell it today you would lose (11.00) from holding Guangdong Silvere Sci or give up 2.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Silvere Sci vs. Shandong Sanyuan Biotechnology
Performance |
| Timeline |
| Guangdong Silvere Sci |
| Shandong Sanyuan Bio |
Guangdong Silvere and Shandong Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Silvere and Shandong Sanyuan
The main advantage of trading using opposite Guangdong Silvere and Shandong Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Silvere 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.| Guangdong Silvere vs. Liaoning Dingjide Petrochemical | Guangdong Silvere vs. Guizhou Chanhen Chemical | Guangdong Silvere vs. Hunan Mendale Hometextile | Guangdong Silvere vs. Dosilicon Co |
| Shandong Sanyuan vs. Shenyang Blue Silver | Shandong Sanyuan vs. Harvest Fund Management | Shandong Sanyuan vs. Guangdong Silvere Sci | Shandong Sanyuan vs. Tianjin Silvery Dragon |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |