Correlation Between Industrial and Shanghai Sanyou
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By analyzing existing cross correlation between Industrial and Commercial and Shanghai Sanyou Medical, you can compare the effects of market volatilities on Industrial and Shanghai Sanyou 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 Industrial with a short position of Shanghai Sanyou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Shanghai Sanyou.
Diversification Opportunities for Industrial and Shanghai Sanyou
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Industrial and Shanghai is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Shanghai Sanyou Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Sanyou Medical and Industrial 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 Industrial and Commercial are associated (or correlated) with Shanghai Sanyou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Sanyou Medical has no effect on the direction of Industrial i.e., Industrial and Shanghai Sanyou go up and down completely randomly.
Pair Corralation between Industrial and Shanghai Sanyou
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.41 times more return on investment than Shanghai Sanyou. However, Industrial and Commercial is 2.43 times less risky than Shanghai Sanyou. It trades about 0.1 of its potential returns per unit of risk. Shanghai Sanyou Medical is currently generating about 0.01 per unit of risk. If you would invest 481.00 in Industrial and Commercial on September 14, 2024 and sell it today you would earn a total of 161.00 from holding Industrial and Commercial or generate 33.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.62% |
| Values | Daily Returns |
Industrial and Commercial vs. Shanghai Sanyou Medical
Performance |
| Timeline |
| Industrial and Commercial |
| Shanghai Sanyou Medical |
Industrial and Shanghai Sanyou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Shanghai Sanyou
The main advantage of trading using opposite Industrial and Shanghai Sanyou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Shanghai Sanyou 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 Sanyou will offset losses from the drop in Shanghai Sanyou's long position.| Industrial vs. Allmed Medical Products | Industrial vs. Blue Sail Medical | Industrial vs. Yingde Greatchem Chemicals | Industrial vs. Zhongzhu Medical Holdings |
| Shanghai Sanyou vs. Industrial and Commercial | Shanghai Sanyou vs. Kweichow Moutai Co | Shanghai Sanyou vs. Agricultural Bank of | Shanghai Sanyou vs. China Mobile Limited |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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