Correlation Between Changjiang Publishing and Shanghai Rightongene
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By analyzing existing cross correlation between Changjiang Publishing Media and Shanghai Rightongene Biotechnology, you can compare the effects of market volatilities on Changjiang Publishing 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 Changjiang Publishing with a short position of Shanghai Rightongene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Publishing and Shanghai Rightongene.
Diversification Opportunities for Changjiang Publishing and Shanghai Rightongene
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Changjiang and Shanghai is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Publishing Media and Shanghai Rightongene Biotechno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rightongene and Changjiang Publishing 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 Changjiang Publishing Media 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 Changjiang Publishing i.e., Changjiang Publishing and Shanghai Rightongene go up and down completely randomly.
Pair Corralation between Changjiang Publishing and Shanghai Rightongene
Assuming the 90 days trading horizon Changjiang Publishing Media is expected to generate 0.79 times more return on investment than Shanghai Rightongene. However, Changjiang Publishing Media is 1.27 times less risky than Shanghai Rightongene. It trades about 0.05 of its potential returns per unit of risk. Shanghai Rightongene Biotechnology is currently generating about -0.03 per unit of risk. If you would invest 548.00 in Changjiang Publishing Media on September 3, 2024 and sell it today you would earn a total of 307.00 from holding Changjiang Publishing Media or generate 56.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changjiang Publishing Media vs. Shanghai Rightongene Biotechno
Performance |
| Timeline |
| Changjiang Publishing |
| Shanghai Rightongene |
Changjiang Publishing and Shanghai Rightongene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Publishing and Shanghai Rightongene
The main advantage of trading using opposite Changjiang Publishing and Shanghai Rightongene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Publishing 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.| Changjiang Publishing vs. Gansu Jiu Steel | Changjiang Publishing vs. Ming Yang Smart | Changjiang Publishing vs. Aba Chemicals Corp | Changjiang Publishing vs. Loctek Ergonomic Technology |
| Shanghai Rightongene vs. Chengdu Kanghua Biological | Shanghai Rightongene vs. Beijing Wantai Biological | Shanghai Rightongene vs. Suzhou Novoprotein Scientific | Shanghai Rightongene vs. Aluminum Corp of |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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