Correlation Between Beijing Sanyuan and Shanghai Rightongene
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By analyzing existing cross correlation between Beijing Sanyuan Foods and Shanghai Rightongene Biotechnology, you can compare the effects of market volatilities on Beijing Sanyuan and Shanghai Rightongene 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 Beijing Sanyuan with a short position of Shanghai Rightongene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Sanyuan and Shanghai Rightongene.
Diversification Opportunities for Beijing Sanyuan and Shanghai Rightongene
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Shanghai is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Sanyuan Foods and Shanghai Rightongene Biotechno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rightongene and Beijing 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 Beijing Sanyuan Foods are associated (or correlated) with Shanghai Rightongene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rightongene has no effect on the direction of Beijing Sanyuan i.e., Beijing Sanyuan and Shanghai Rightongene go up and down completely randomly.
Pair Corralation between Beijing Sanyuan and Shanghai Rightongene
Assuming the 90 days trading horizon Beijing Sanyuan Foods is expected to under-perform the Shanghai Rightongene. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Sanyuan Foods is 1.18 times less risky than Shanghai Rightongene. The stock trades about -0.16 of its potential returns per unit of risk. The Shanghai Rightongene Biotechnology is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 2,080 in Shanghai Rightongene Biotechnology on October 11, 2024 and sell it today you would lose (224.00) from holding Shanghai Rightongene Biotechnology or give up 10.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Sanyuan Foods vs. Shanghai Rightongene Biotechno
Performance |
| Timeline |
| Beijing Sanyuan Foods |
| Shanghai Rightongene |
Beijing Sanyuan and Shanghai Rightongene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Sanyuan and Shanghai Rightongene
The main advantage of trading using opposite Beijing Sanyuan and Shanghai Rightongene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Sanyuan position performs unexpectedly, Shanghai Rightongene 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 Rightongene will offset losses from the drop in Shanghai Rightongene's long position.| Beijing Sanyuan vs. Jinlong Machinery Electronic | Beijing Sanyuan vs. Sunny Loan Top | Beijing Sanyuan vs. Hainan Airlines Co | Beijing Sanyuan vs. Easyhome New Retail |
| Shanghai Rightongene vs. Beijing Sanyuan Foods | Shanghai Rightongene vs. Ligao Foods CoLtd | Shanghai Rightongene vs. Guangzhou Seagull Kitchen | Shanghai Rightongene vs. Guilin Seamild Foods |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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