Correlation Between Shandong Sanyuan and Poly Real
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By analyzing existing cross correlation between Shandong Sanyuan Biotechnology and Poly Real Estate, you can compare the effects of market volatilities on Shandong Sanyuan and Poly Real 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 Poly Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sanyuan and Poly Real.
Diversification Opportunities for Shandong Sanyuan and Poly Real
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and Poly is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sanyuan Biotechnology and Poly Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poly Real Estate 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 Poly Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poly Real Estate has no effect on the direction of Shandong Sanyuan i.e., Shandong Sanyuan and Poly Real go up and down completely randomly.
Pair Corralation between Shandong Sanyuan and Poly Real
Assuming the 90 days trading horizon Shandong Sanyuan Biotechnology is expected to generate 0.82 times more return on investment than Poly Real. However, Shandong Sanyuan Biotechnology is 1.22 times less risky than Poly Real. It trades about 0.24 of its potential returns per unit of risk. Poly Real Estate is currently generating about -0.13 per unit of risk. If you would invest 2,468 in Shandong Sanyuan Biotechnology on November 7, 2024 and sell it today you would earn a total of 133.00 from holding Shandong Sanyuan Biotechnology or generate 5.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sanyuan Biotechnology vs. Poly Real Estate
Performance |
| Timeline |
| Shandong Sanyuan Bio |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Poly Real Estate |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shandong Sanyuan and Poly Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sanyuan and Poly Real
The main advantage of trading using opposite Shandong Sanyuan and Poly Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sanyuan position performs unexpectedly, Poly Real 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 Poly Real will offset losses from the drop in Poly Real's long position.The idea behind Shandong Sanyuan Biotechnology and Poly Real Estate pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Poly Real vs. Greattown Holdings Ltd | Poly Real vs. Beijing Hualian Department | Poly Real vs. Shanghai Chinafortune 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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