Correlation Between Sinotrans and Shandong Sinoglory
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By analyzing existing cross correlation between Sinotrans Ltd Class and Shandong Sinoglory Health, you can compare the effects of market volatilities on Sinotrans and Shandong Sinoglory 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 Sinotrans with a short position of Shandong Sinoglory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinotrans and Shandong Sinoglory.
Diversification Opportunities for Sinotrans and Shandong Sinoglory
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sinotrans and Shandong is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Sinotrans Ltd Class and Shandong Sinoglory Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sinoglory Health and Sinotrans 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 Sinotrans Ltd Class are associated (or correlated) with Shandong Sinoglory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sinoglory Health has no effect on the direction of Sinotrans i.e., Sinotrans and Shandong Sinoglory go up and down completely randomly.
Pair Corralation between Sinotrans and Shandong Sinoglory
Assuming the 90 days trading horizon Sinotrans Ltd Class is expected to generate 0.98 times more return on investment than Shandong Sinoglory. However, Sinotrans Ltd Class is 1.02 times less risky than Shandong Sinoglory. It trades about 0.04 of its potential returns per unit of risk. Shandong Sinoglory Health is currently generating about -0.03 per unit of risk. If you would invest 390.00 in Sinotrans Ltd Class on October 16, 2024 and sell it today you would earn a total of 119.00 from holding Sinotrans Ltd Class or generate 30.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinotrans Ltd Class vs. Shandong Sinoglory Health
Performance |
| Timeline |
| Sinotrans Class |
| Shandong Sinoglory Health |
Sinotrans and Shandong Sinoglory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinotrans and Shandong Sinoglory
The main advantage of trading using opposite Sinotrans and Shandong Sinoglory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinotrans position performs unexpectedly, Shandong Sinoglory 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 Shandong Sinoglory will offset losses from the drop in Shandong Sinoglory's long position.| Sinotrans vs. Shandong Sinoglory Health | Sinotrans vs. China Reform Health | Sinotrans vs. Xiangyang Automobile Bearing | Sinotrans vs. Healthcare Co |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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