Correlation Between Shenzhen Bioeasy and Shandong Sino
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By analyzing existing cross correlation between Shenzhen Bioeasy Biotechnology and Shandong Sino Agri United, you can compare the effects of market volatilities on Shenzhen Bioeasy and Shandong Sino 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 Shenzhen Bioeasy with a short position of Shandong Sino. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bioeasy and Shandong Sino.
Diversification Opportunities for Shenzhen Bioeasy and Shandong Sino
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Shandong is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bioeasy Biotechnology and Shandong Sino Agri United in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sino Agri and Shenzhen Bioeasy 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 Shenzhen Bioeasy Biotechnology are associated (or correlated) with Shandong Sino. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sino Agri has no effect on the direction of Shenzhen Bioeasy i.e., Shenzhen Bioeasy and Shandong Sino go up and down completely randomly.
Pair Corralation between Shenzhen Bioeasy and Shandong Sino
Assuming the 90 days trading horizon Shenzhen Bioeasy Biotechnology is expected to generate 1.15 times more return on investment than Shandong Sino. However, Shenzhen Bioeasy is 1.15 times more volatile than Shandong Sino Agri United. It trades about 0.1 of its potential returns per unit of risk. Shandong Sino Agri United is currently generating about 0.07 per unit of risk. If you would invest 921.00 in Shenzhen Bioeasy Biotechnology on September 13, 2024 and sell it today you would earn a total of 89.00 from holding Shenzhen Bioeasy Biotechnology or generate 9.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Bioeasy Biotechnology vs. Shandong Sino Agri United
Performance |
| Timeline |
| Shenzhen Bioeasy Bio |
| Shandong Sino Agri |
Shenzhen Bioeasy and Shandong Sino Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bioeasy and Shandong Sino
The main advantage of trading using opposite Shenzhen Bioeasy and Shandong Sino positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bioeasy position performs unexpectedly, Shandong Sino 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 Sino will offset losses from the drop in Shandong Sino's long position.| Shenzhen Bioeasy vs. Xinhua Winshare Publishing | Shenzhen Bioeasy vs. Beijing Mainstreets Investment | Shenzhen Bioeasy vs. China Asset Management | Shenzhen Bioeasy vs. Hunan Investment Group |
| Shandong Sino vs. Bloomage Biotechnology Corp | Shandong Sino vs. Ningbo MedicalSystem Biotechnology | Shandong Sino vs. Shenzhen Bioeasy Biotechnology | Shandong Sino vs. Postal Savings Bank |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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