Correlation Between Shenzhen Bioeasy and Dirui Industrial
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By analyzing existing cross correlation between Shenzhen Bioeasy Biotechnology and Dirui Industrial Co, you can compare the effects of market volatilities on Shenzhen Bioeasy and Dirui Industrial 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 Dirui Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bioeasy and Dirui Industrial.
Diversification Opportunities for Shenzhen Bioeasy and Dirui Industrial
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Dirui is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bioeasy Biotechnology and Dirui Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dirui Industrial 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 Dirui Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dirui Industrial has no effect on the direction of Shenzhen Bioeasy i.e., Shenzhen Bioeasy and Dirui Industrial go up and down completely randomly.
Pair Corralation between Shenzhen Bioeasy and Dirui Industrial
Assuming the 90 days trading horizon Shenzhen Bioeasy Biotechnology is expected to under-perform the Dirui Industrial. In addition to that, Shenzhen Bioeasy is 1.19 times more volatile than Dirui Industrial Co. It trades about -0.03 of its total potential returns per unit of risk. Dirui Industrial Co is currently generating about -0.01 per unit of volatility. If you would invest 2,387 in Dirui Industrial Co on September 5, 2024 and sell it today you would lose (717.00) from holding Dirui Industrial Co or give up 30.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Bioeasy Biotechnology vs. Dirui Industrial Co
Performance |
| Timeline |
| Shenzhen Bioeasy Bio |
| Dirui Industrial |
Shenzhen Bioeasy and Dirui Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bioeasy and Dirui Industrial
The main advantage of trading using opposite Shenzhen Bioeasy and Dirui Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bioeasy position performs unexpectedly, Dirui Industrial 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 Dirui Industrial will offset losses from the drop in Dirui Industrial's long position.| Shenzhen Bioeasy vs. Kweichow Moutai Co | Shenzhen Bioeasy vs. Shenzhen Mindray Bio Medical | Shenzhen Bioeasy vs. Jiangsu Pacific Quartz | Shenzhen Bioeasy vs. G bits Network Technology |
| Dirui Industrial vs. Shenzhen Bioeasy Biotechnology | Dirui Industrial vs. Bloomage Biotechnology Corp | Dirui Industrial vs. Wintao Communications Co | Dirui Industrial vs. Eastern Communications Co |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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