Correlation Between Shenyang Blue and Shandong Sanyuan
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By analyzing existing cross correlation between Shenyang Blue Silver and Shandong Sanyuan Biotechnology, you can compare the effects of market volatilities on Shenyang Blue 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 Shenyang Blue with a short position of Shandong Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Blue and Shandong Sanyuan.
Diversification Opportunities for Shenyang Blue and Shandong Sanyuan
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenyang and Shandong is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Blue Silver 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 Shenyang Blue 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 Shenyang Blue Silver 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 Shenyang Blue i.e., Shenyang Blue and Shandong Sanyuan go up and down completely randomly.
Pair Corralation between Shenyang Blue and Shandong Sanyuan
Assuming the 90 days trading horizon Shenyang Blue Silver is expected to generate 2.28 times more return on investment than Shandong Sanyuan. However, Shenyang Blue is 2.28 times more volatile than Shandong Sanyuan Biotechnology. It trades about 0.06 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 935.00 in Shenyang Blue Silver on October 16, 2024 and sell it today you would earn a total of 1,261 from holding Shenyang Blue Silver or generate 134.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Blue Silver vs. Shandong Sanyuan Biotechnology
Performance |
| Timeline |
| Shenyang Blue Silver |
| Shandong Sanyuan Bio |
Shenyang Blue and Shandong Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Blue and Shandong Sanyuan
The main advantage of trading using opposite Shenyang Blue and Shandong Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Blue 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.| Shenyang Blue vs. Jiangxi Hengda Hi Tech | Shenyang Blue vs. Runjian Communication Co | Shenyang Blue vs. Guangzhou Haige Communications | Shenyang Blue vs. Shantui Construction Machinery |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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