Correlation Between Shandong Sanyuan and Xiamen Bank
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Sanyuan Biotechnology and Xiamen Bank Co, you can compare the effects of market volatilities on Shandong Sanyuan and Xiamen Bank 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 Xiamen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sanyuan and Xiamen Bank.
Diversification Opportunities for Shandong Sanyuan and Xiamen Bank
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shandong and Xiamen is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sanyuan Biotechnology and Xiamen Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Bank 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 Xiamen Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Bank has no effect on the direction of Shandong Sanyuan i.e., Shandong Sanyuan and Xiamen Bank go up and down completely randomly.
Pair Corralation between Shandong Sanyuan and Xiamen Bank
Assuming the 90 days trading horizon Shandong Sanyuan Biotechnology is expected to generate 1.03 times more return on investment than Xiamen Bank. However, Shandong Sanyuan is 1.03 times more volatile than Xiamen Bank Co. It trades about 0.01 of its potential returns per unit of risk. Xiamen Bank Co is currently generating about -0.05 per unit of risk. If you would invest 2,595 in Shandong Sanyuan Biotechnology on November 1, 2024 and sell it today you would earn a total of 6.00 from holding Shandong Sanyuan Biotechnology or generate 0.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sanyuan Biotechnology vs. Xiamen Bank Co
Performance |
| Timeline |
| Shandong Sanyuan Bio |
| Xiamen Bank |
Shandong Sanyuan and Xiamen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sanyuan and Xiamen Bank
The main advantage of trading using opposite Shandong Sanyuan and Xiamen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sanyuan position performs unexpectedly, Xiamen Bank 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 Xiamen Bank will offset losses from the drop in Xiamen Bank's long position.| Shandong Sanyuan vs. Hainan Mining Co | Shandong Sanyuan vs. Wuhan Hvsen Biotechnology | Shandong Sanyuan vs. Ningbo MedicalSystem Biotechnology | Shandong Sanyuan vs. Soochow Suzhou Industrial |
| Xiamen Bank vs. Lianhe Chemical Technology | Xiamen Bank vs. Shandong Sanyuan Biotechnology | Xiamen Bank vs. Lier Chemical Co | Xiamen Bank vs. Guangdong Marubi Biotechnology |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |