Correlation Between Shanghai Phichem and Shenzhen Glory
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By analyzing existing cross correlation between Shanghai Phichem Material and Shenzhen Glory Medical, you can compare the effects of market volatilities on Shanghai Phichem and Shenzhen Glory 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 Shanghai Phichem with a short position of Shenzhen Glory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Phichem and Shenzhen Glory.
Diversification Opportunities for Shanghai Phichem and Shenzhen Glory
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Shenzhen is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Phichem Material and Shenzhen Glory Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Glory Medical and Shanghai Phichem 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 Shanghai Phichem Material are associated (or correlated) with Shenzhen Glory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Glory Medical has no effect on the direction of Shanghai Phichem i.e., Shanghai Phichem and Shenzhen Glory go up and down completely randomly.
Pair Corralation between Shanghai Phichem and Shenzhen Glory
Assuming the 90 days trading horizon Shanghai Phichem Material is expected to generate 1.32 times more return on investment than Shenzhen Glory. However, Shanghai Phichem is 1.32 times more volatile than Shenzhen Glory Medical. It trades about 0.01 of its potential returns per unit of risk. Shenzhen Glory Medical is currently generating about -0.03 per unit of risk. If you would invest 1,843 in Shanghai Phichem Material on October 27, 2024 and sell it today you would lose (229.00) from holding Shanghai Phichem Material or give up 12.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Phichem Material vs. Shenzhen Glory Medical
Performance |
| Timeline |
| Shanghai Phichem Material |
| Shenzhen Glory Medical |
Shanghai Phichem and Shenzhen Glory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Phichem and Shenzhen Glory
The main advantage of trading using opposite Shanghai Phichem and Shenzhen Glory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Phichem position performs unexpectedly, Shenzhen Glory 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 Shenzhen Glory will offset losses from the drop in Shenzhen Glory's long position.| Shanghai Phichem vs. COL Digital Publishing | Shanghai Phichem vs. Jiangsu Phoenix Publishing | Shanghai Phichem vs. Offcn Education Technology | Shanghai Phichem vs. Chengtun Mining Group |
| Shenzhen Glory vs. CICC Fund Management | Shenzhen Glory vs. Wonders Information | Shenzhen Glory vs. Digital China Information | Shenzhen Glory vs. Bonree Data Technology |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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