Correlation Between ShuYu Civilian and Shandong Rike
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By analyzing existing cross correlation between ShuYu Civilian Pharmacy and Shandong Rike Chemical, you can compare the effects of market volatilities on ShuYu Civilian and Shandong Rike 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 ShuYu Civilian with a short position of Shandong Rike. Check out your portfolio center. Please also check ongoing floating volatility patterns of ShuYu Civilian and Shandong Rike.
Diversification Opportunities for ShuYu Civilian and Shandong Rike
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ShuYu and Shandong is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding ShuYu Civilian Pharmacy and Shandong Rike Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Rike Chemical and ShuYu Civilian 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 ShuYu Civilian Pharmacy are associated (or correlated) with Shandong Rike. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Rike Chemical has no effect on the direction of ShuYu Civilian i.e., ShuYu Civilian and Shandong Rike go up and down completely randomly.
Pair Corralation between ShuYu Civilian and Shandong Rike
Assuming the 90 days trading horizon ShuYu Civilian Pharmacy is expected to under-perform the Shandong Rike. But the stock apears to be less risky and, when comparing its historical volatility, ShuYu Civilian Pharmacy is 1.72 times less risky than Shandong Rike. The stock trades about -0.2 of its potential returns per unit of risk. The Shandong Rike Chemical is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 590.00 in Shandong Rike Chemical on October 31, 2024 and sell it today you would lose (27.00) from holding Shandong Rike Chemical or give up 4.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ShuYu Civilian Pharmacy vs. Shandong Rike Chemical
Performance |
| Timeline |
| ShuYu Civilian Pharmacy |
| Shandong Rike Chemical |
ShuYu Civilian and Shandong Rike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ShuYu Civilian and Shandong Rike
The main advantage of trading using opposite ShuYu Civilian and Shandong Rike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ShuYu Civilian position performs unexpectedly, Shandong Rike 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 Rike will offset losses from the drop in Shandong Rike's long position.| ShuYu Civilian vs. Qijing Machinery | ShuYu Civilian vs. Ye Chiu Metal | ShuYu Civilian vs. XCMG Construction Machinery | ShuYu Civilian vs. Shandong Hongchuang Aluminum |
| Shandong Rike vs. Oppein Home Group | Shandong Rike vs. Jiangsu Jinling Sports | Shandong Rike vs. Shanghai Shuixing Home | Shandong Rike vs. UE Furniture 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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