Correlation Between Poly Real and Shanghai Rendu
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By analyzing existing cross correlation between Poly Real Estate and Shanghai Rendu Biotechnology, you can compare the effects of market volatilities on Poly Real and Shanghai Rendu 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 Poly Real with a short position of Shanghai Rendu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Poly Real and Shanghai Rendu.
Diversification Opportunities for Poly Real and Shanghai Rendu
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Poly and Shanghai is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Poly Real Estate and Shanghai Rendu Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rendu Biote and Poly Real 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 Poly Real Estate are associated (or correlated) with Shanghai Rendu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rendu Biote has no effect on the direction of Poly Real i.e., Poly Real and Shanghai Rendu go up and down completely randomly.
Pair Corralation between Poly Real and Shanghai Rendu
Assuming the 90 days trading horizon Poly Real is expected to generate 1.9 times less return on investment than Shanghai Rendu. But when comparing it to its historical volatility, Poly Real Estate is 1.43 times less risky than Shanghai Rendu. It trades about 0.16 of its potential returns per unit of risk. Shanghai Rendu Biotechnology is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,449 in Shanghai Rendu Biotechnology on September 4, 2024 and sell it today you would earn a total of 1,800 from holding Shanghai Rendu Biotechnology or generate 73.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Poly Real Estate vs. Shanghai Rendu Biotechnology
Performance |
| Timeline |
| Poly Real Estate |
| Shanghai Rendu Biote |
Poly Real and Shanghai Rendu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Poly Real and Shanghai Rendu
The main advantage of trading using opposite Poly Real and Shanghai Rendu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Poly Real position performs unexpectedly, Shanghai Rendu 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 Shanghai Rendu will offset losses from the drop in Shanghai Rendu's long position.| Poly Real vs. Zhongshan Broad Ocean Motor | Poly Real vs. Hubeiyichang Transportation Group | Poly Real vs. Guizhou BroadcastingTV Info | Poly Real vs. Aurora Optoelectronics Co |
| Shanghai Rendu vs. Kweichow Moutai Co | Shanghai Rendu vs. Shenzhen Mindray Bio Medical | Shanghai Rendu vs. Jiangsu Pacific Quartz | Shanghai Rendu vs. G bits Network 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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