Correlation Between Shandong Sanyuan and Hangzhou Pinming
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By analyzing existing cross correlation between Shandong Sanyuan Biotechnology and Hangzhou Pinming Software, you can compare the effects of market volatilities on Shandong Sanyuan and Hangzhou Pinming 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 Hangzhou Pinming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sanyuan and Hangzhou Pinming.
Diversification Opportunities for Shandong Sanyuan and Hangzhou Pinming
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and Hangzhou is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sanyuan Biotechnology and Hangzhou Pinming Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Pinming Software 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 Hangzhou Pinming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Pinming Software has no effect on the direction of Shandong Sanyuan i.e., Shandong Sanyuan and Hangzhou Pinming go up and down completely randomly.
Pair Corralation between Shandong Sanyuan and Hangzhou Pinming
Assuming the 90 days trading horizon Shandong Sanyuan Biotechnology is expected to generate 0.72 times more return on investment than Hangzhou Pinming. However, Shandong Sanyuan Biotechnology is 1.39 times less risky than Hangzhou Pinming. It trades about -0.21 of its potential returns per unit of risk. Hangzhou Pinming Software is currently generating about -0.3 per unit of risk. If you would invest 2,858 in Shandong Sanyuan Biotechnology on October 17, 2024 and sell it today you would lose (290.00) from holding Shandong Sanyuan Biotechnology or give up 10.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sanyuan Biotechnology vs. Hangzhou Pinming Software
Performance |
| Timeline |
| Shandong Sanyuan Bio |
| Hangzhou Pinming Software |
Shandong Sanyuan and Hangzhou Pinming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sanyuan and Hangzhou Pinming
The main advantage of trading using opposite Shandong Sanyuan and Hangzhou Pinming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sanyuan position performs unexpectedly, Hangzhou Pinming 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 Hangzhou Pinming will offset losses from the drop in Hangzhou Pinming's long position.| Shandong Sanyuan vs. China Asset Management | Shandong Sanyuan vs. Holitech Technology Co | Shandong Sanyuan vs. Jiangsu Yueda Investment | Shandong Sanyuan vs. Postal Savings Bank |
| Hangzhou Pinming vs. Eastern Communications Co | Hangzhou Pinming vs. Shanghai Shibei Hi Tech | Hangzhou Pinming vs. Shandong Sanyuan Biotechnology | Hangzhou Pinming vs. Anhui Huaheng 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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