Correlation Between Shandong Sanyuan and China State
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Sanyuan Biotechnology and China State Construction, you can compare the effects of market volatilities on Shandong Sanyuan and China State 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 State. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sanyuan and China State.
Diversification Opportunities for Shandong Sanyuan and China State
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and China is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sanyuan Biotechnology and China State Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China State Construction 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 State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China State Construction has no effect on the direction of Shandong Sanyuan i.e., Shandong Sanyuan and China State go up and down completely randomly.
Pair Corralation between Shandong Sanyuan and China State
Assuming the 90 days trading horizon Shandong Sanyuan Biotechnology is expected to generate 1.93 times more return on investment than China State. However, Shandong Sanyuan is 1.93 times more volatile than China State Construction. It trades about -0.07 of its potential returns per unit of risk. China State Construction is currently generating about -0.18 per unit of risk. If you would invest 2,784 in Shandong Sanyuan Biotechnology on November 3, 2024 and sell it today you would lose (183.00) from holding Shandong Sanyuan Biotechnology or give up 6.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sanyuan Biotechnology vs. China State Construction
Performance |
| Timeline |
| Shandong Sanyuan Bio |
| China State Construction |
Shandong Sanyuan and China State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sanyuan and China State
The main advantage of trading using opposite Shandong Sanyuan and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sanyuan position performs unexpectedly, China State 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 State will offset losses from the drop in China State'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 |
| China State vs. Peoples Insurance of | China State vs. Southern PublishingMedia Co | China State vs. Shenwu Energy Saving | China State vs. Lecron Energy Saving |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |