Correlation Between Gemdale Corp and Shanghai OPM
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By analyzing existing cross correlation between Gemdale Corp and Shanghai OPM Biosciences, you can compare the effects of market volatilities on Gemdale Corp and Shanghai OPM 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 Gemdale Corp with a short position of Shanghai OPM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gemdale Corp and Shanghai OPM.
Diversification Opportunities for Gemdale Corp and Shanghai OPM
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gemdale and Shanghai is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Gemdale Corp and Shanghai OPM Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai OPM Biosciences and Gemdale Corp 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 Gemdale Corp are associated (or correlated) with Shanghai OPM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai OPM Biosciences has no effect on the direction of Gemdale Corp i.e., Gemdale Corp and Shanghai OPM go up and down completely randomly.
Pair Corralation between Gemdale Corp and Shanghai OPM
Assuming the 90 days trading horizon Gemdale Corp is expected to generate 0.92 times more return on investment than Shanghai OPM. However, Gemdale Corp is 1.09 times less risky than Shanghai OPM. It trades about -0.18 of its potential returns per unit of risk. Shanghai OPM Biosciences is currently generating about -0.17 per unit of risk. If you would invest 486.00 in Gemdale Corp on October 18, 2024 and sell it today you would lose (35.00) from holding Gemdale Corp or give up 7.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gemdale Corp vs. Shanghai OPM Biosciences
Performance |
| Timeline |
| Gemdale Corp |
| Shanghai OPM Biosciences |
Gemdale Corp and Shanghai OPM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gemdale Corp and Shanghai OPM
The main advantage of trading using opposite Gemdale Corp and Shanghai OPM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gemdale Corp position performs unexpectedly, Shanghai OPM 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 OPM will offset losses from the drop in Shanghai OPM's long position.| Gemdale Corp vs. HaiXin Foods Co | Gemdale Corp vs. Beijing Sanyuan Foods | Gemdale Corp vs. Hainan Haiqi Transportation | Gemdale Corp vs. Qingdao Foods Co |
| Shanghai OPM vs. Jinsanjiang Silicon Material | Shanghai OPM vs. Huayi Brothers Media | Shanghai OPM vs. Duzhe Publishing Media | Shanghai OPM vs. Hengdian Entertainment Co |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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