Correlation Between Shandong Sanyuan and China World
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By analyzing existing cross correlation between Shandong Sanyuan Biotechnology and China World Trade, you can compare the effects of market volatilities on Shandong Sanyuan and China World 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 China World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sanyuan and China World.
Diversification Opportunities for Shandong Sanyuan and China World
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shandong and China is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sanyuan Biotechnology and China World Trade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China World Trade 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 China World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China World Trade has no effect on the direction of Shandong Sanyuan i.e., Shandong Sanyuan and China World go up and down completely randomly.
Pair Corralation between Shandong Sanyuan and China World
Assuming the 90 days trading horizon Shandong Sanyuan is expected to generate 4.0 times less return on investment than China World. In addition to that, Shandong Sanyuan is 1.24 times more volatile than China World Trade. It trades about 0.05 of its total potential returns per unit of risk. China World Trade is currently generating about 0.26 per unit of volatility. If you would invest 2,235 in China World Trade on September 27, 2024 and sell it today you would earn a total of 226.00 from holding China World Trade or generate 10.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sanyuan Biotechnology vs. China World Trade
Performance |
| Timeline |
| Shandong Sanyuan Bio |
| China World Trade |
Shandong Sanyuan and China World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sanyuan and China World
The main advantage of trading using opposite Shandong Sanyuan and China World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sanyuan position performs unexpectedly, China World 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 China World will offset losses from the drop in China World's long position.| Shandong Sanyuan vs. Ming Yang Smart | Shandong Sanyuan vs. 159681 | Shandong Sanyuan vs. 159005 | Shandong Sanyuan vs. Loctek Ergonomic Technology |
| China World vs. PetroChina Co Ltd | China World vs. China Mobile Limited | China World vs. CNOOC Limited | China World vs. Ping An Insurance |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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