Correlation Between Shandong Homey and Shanghai OPM
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By analyzing existing cross correlation between Shandong Homey Aquatic and Shanghai OPM Biosciences, you can compare the effects of market volatilities on Shandong Homey 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 Shandong Homey with a short position of Shanghai OPM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Homey and Shanghai OPM.
Diversification Opportunities for Shandong Homey and Shanghai OPM
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shandong and Shanghai is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Homey Aquatic 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 Shandong Homey 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 Homey Aquatic 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 Shandong Homey i.e., Shandong Homey and Shanghai OPM go up and down completely randomly.
Pair Corralation between Shandong Homey and Shanghai OPM
Assuming the 90 days trading horizon Shandong Homey is expected to generate 1.2 times less return on investment than Shanghai OPM. But when comparing it to its historical volatility, Shandong Homey Aquatic is 1.13 times less risky than Shanghai OPM. It trades about 0.13 of its potential returns per unit of risk. Shanghai OPM Biosciences is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 3,370 in Shanghai OPM Biosciences on August 30, 2024 and sell it today you would earn a total of 898.00 from holding Shanghai OPM Biosciences or generate 26.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 97.44% |
| Values | Daily Returns |
Shandong Homey Aquatic vs. Shanghai OPM Biosciences
Performance |
| Timeline |
| Shandong Homey Aquatic |
| Shanghai OPM Biosciences |
Shandong Homey and Shanghai OPM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Homey and Shanghai OPM
The main advantage of trading using opposite Shandong Homey and Shanghai OPM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Homey 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.| Shandong Homey vs. Industrial and Commercial | Shandong Homey vs. China Construction Bank | Shandong Homey vs. Agricultural Bank of | Shandong Homey vs. Bank of China |
| Shanghai OPM vs. Shandong Homey Aquatic | Shanghai OPM vs. Offshore Oil Engineering | Shanghai OPM vs. UE Furniture Co | Shanghai OPM vs. Anhui Jianghuai Automobile |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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