Correlation Between China Asset and Shandong Sanyuan
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By analyzing existing cross correlation between China Asset Management and Shandong Sanyuan Biotechnology, you can compare the effects of market volatilities on China Asset and Shandong Sanyuan 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 China Asset with a short position of Shandong Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Shandong Sanyuan.
Diversification Opportunities for China Asset and Shandong Sanyuan
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Shandong is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management and Shandong Sanyuan Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sanyuan Bio and China Asset 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 China Asset Management are associated (or correlated) with Shandong Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sanyuan Bio has no effect on the direction of China Asset i.e., China Asset and Shandong Sanyuan go up and down completely randomly.
Pair Corralation between China Asset and Shandong Sanyuan
Assuming the 90 days trading horizon China Asset Management is expected to generate 0.58 times more return on investment than Shandong Sanyuan. However, China Asset Management is 1.72 times less risky than Shandong Sanyuan. It trades about 0.48 of its potential returns per unit of risk. Shandong Sanyuan Biotechnology is currently generating about -0.07 per unit of risk. If you would invest 316.00 in China Asset Management on October 30, 2024 and sell it today you would earn a total of 80.00 from holding China Asset Management or generate 25.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. Shandong Sanyuan Biotechnology
Performance |
| Timeline |
| China Asset Management |
| Shandong Sanyuan Bio |
China Asset and Shandong Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and Shandong Sanyuan
The main advantage of trading using opposite China Asset and Shandong Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset position performs unexpectedly, Shandong Sanyuan 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 Shandong Sanyuan will offset losses from the drop in Shandong Sanyuan's long position.| China Asset vs. Ningbo Construction Co | China Asset vs. Eastroc Beverage Group | China Asset vs. Anhui Huaheng Biotechnology | China Asset vs. Allied Machinery Co |
| Shandong Sanyuan vs. Kweichow Moutai Co | Shandong Sanyuan vs. Contemporary Amperex Technology | Shandong Sanyuan vs. G bits Network Technology | Shandong Sanyuan vs. Beijing Roborock 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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