Correlation Between Shandong Sanyuan and Jiangxi Selon
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By analyzing existing cross correlation between Shandong Sanyuan Biotechnology and Jiangxi Selon Industrial, you can compare the effects of market volatilities on Shandong Sanyuan and Jiangxi Selon 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 Shandong Sanyuan with a short position of Jiangxi Selon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sanyuan and Jiangxi Selon.
Diversification Opportunities for Shandong Sanyuan and Jiangxi Selon
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shandong and Jiangxi is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sanyuan Biotechnology and Jiangxi Selon Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Selon Industrial and Shandong Sanyuan 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 Shandong Sanyuan Biotechnology are associated (or correlated) with Jiangxi Selon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Selon Industrial has no effect on the direction of Shandong Sanyuan i.e., Shandong Sanyuan and Jiangxi Selon go up and down completely randomly.
Pair Corralation between Shandong Sanyuan and Jiangxi Selon
Assuming the 90 days trading horizon Shandong Sanyuan Biotechnology is expected to generate 0.68 times more return on investment than Jiangxi Selon. However, Shandong Sanyuan Biotechnology is 1.47 times less risky than Jiangxi Selon. It trades about 0.1 of its potential returns per unit of risk. Jiangxi Selon Industrial is currently generating about -0.11 per unit of risk. If you would invest 2,532 in Shandong Sanyuan Biotechnology on November 3, 2024 and sell it today you would earn a total of 69.00 from holding Shandong Sanyuan Biotechnology or generate 2.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sanyuan Biotechnology vs. Jiangxi Selon Industrial
Performance |
| Timeline |
| Shandong Sanyuan Bio |
| Jiangxi Selon Industrial |
Shandong Sanyuan and Jiangxi Selon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sanyuan and Jiangxi Selon
The main advantage of trading using opposite Shandong Sanyuan and Jiangxi Selon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sanyuan position performs unexpectedly, Jiangxi Selon 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 Jiangxi Selon will offset losses from the drop in Jiangxi Selon's long position.| Shandong Sanyuan vs. Financial Street Holdings | Shandong Sanyuan vs. Tibet Huayu Mining | Shandong Sanyuan vs. Ping An Insurance | Shandong Sanyuan vs. Shenzhen Shenbao Industrial |
| Jiangxi Selon vs. Nantong Haixing Electronics | Jiangxi Selon vs. Double Medical Technology | Jiangxi Selon vs. Weihai Honglin Electronic | Jiangxi Selon vs. Guangdong Transtek Medical |
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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