Correlation Between New China and Shanghai OPM
Specify exactly 2 symbols:
By analyzing existing cross correlation between New China Life and Shanghai OPM Biosciences, you can compare the effects of market volatilities on New China 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 New China with a short position of Shanghai OPM. Check out your portfolio center. Please also check ongoing floating volatility patterns of New China and Shanghai OPM.
Diversification Opportunities for New China and Shanghai OPM
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between New and Shanghai is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding New China Life 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 New China 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 New China Life 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 New China i.e., New China and Shanghai OPM go up and down completely randomly.
Pair Corralation between New China and Shanghai OPM
Assuming the 90 days trading horizon New China Life is expected to under-perform the Shanghai OPM. But the stock apears to be less risky and, when comparing its historical volatility, New China Life is 1.27 times less risky than Shanghai OPM. The stock trades about -0.05 of its potential returns per unit of risk. The Shanghai OPM Biosciences is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 4,255 in Shanghai OPM Biosciences on August 27, 2024 and sell it today you would earn a total of 23.00 from holding Shanghai OPM Biosciences or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
New China Life vs. Shanghai OPM Biosciences
Performance |
| Timeline |
| New China Life |
| Shanghai OPM Biosciences |
New China and Shanghai OPM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New China and Shanghai OPM
The main advantage of trading using opposite New China and Shanghai OPM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New China 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.| New China vs. Hubei Dinglong Chemical | New China vs. Guizhou Chanhen Chemical | New China vs. MayAir Technology Co | New China vs. Vanfund Urban Investment |
| Shanghai OPM vs. Industrial and Commercial | Shanghai OPM vs. China Construction Bank | Shanghai OPM vs. Agricultural Bank of | Shanghai OPM vs. Bank of China |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |