Correlation Between Shandong Sanyuan and Cultural Investment
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By analyzing existing cross correlation between Shandong Sanyuan Biotechnology and Cultural Investment Holdings, you can compare the effects of market volatilities on Shandong Sanyuan and Cultural Investment 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 Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sanyuan and Cultural Investment.
Diversification Opportunities for Shandong Sanyuan and Cultural Investment
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and Cultural is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sanyuan Biotechnology and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment 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 Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of Shandong Sanyuan i.e., Shandong Sanyuan and Cultural Investment go up and down completely randomly.
Pair Corralation between Shandong Sanyuan and Cultural Investment
Assuming the 90 days trading horizon Shandong Sanyuan Biotechnology is expected to generate 0.86 times more return on investment than Cultural Investment. However, Shandong Sanyuan Biotechnology is 1.16 times less risky than Cultural Investment. It trades about -0.13 of its potential returns per unit of risk. Cultural Investment Holdings is currently generating about -0.24 per unit of risk. If you would invest 2,728 in Shandong Sanyuan Biotechnology on October 25, 2024 and sell it today you would lose (142.00) from holding Shandong Sanyuan Biotechnology or give up 5.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sanyuan Biotechnology vs. Cultural Investment Holdings
Performance |
| Timeline |
| Shandong Sanyuan Bio |
| Cultural Investment |
Shandong Sanyuan and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sanyuan and Cultural Investment
The main advantage of trading using opposite Shandong Sanyuan and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sanyuan position performs unexpectedly, Cultural Investment 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 Cultural Investment will offset losses from the drop in Cultural Investment's long position.| Shandong Sanyuan vs. Agricultural Bank of | Shandong Sanyuan vs. Postal Savings Bank | Shandong Sanyuan vs. Bank of Communications | Shandong Sanyuan vs. China Merchants Bank |
| Cultural Investment vs. Yingde Greatchem Chemicals | Cultural Investment vs. MayAir Technology Co | Cultural Investment vs. Beijing Kingsoft Office | Cultural Investment vs. Southchip Semiconductor Technology |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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