Correlation Between Shandong Sinoglory and Beijing Shunxin
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By analyzing existing cross correlation between Shandong Sinoglory Health and Beijing Shunxin Agriculture, you can compare the effects of market volatilities on Shandong Sinoglory and Beijing Shunxin 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 Sinoglory with a short position of Beijing Shunxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sinoglory and Beijing Shunxin.
Diversification Opportunities for Shandong Sinoglory and Beijing Shunxin
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Beijing is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sinoglory Health and Beijing Shunxin Agriculture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Shunxin Agri and Shandong Sinoglory 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 Sinoglory Health are associated (or correlated) with Beijing Shunxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Shunxin Agri has no effect on the direction of Shandong Sinoglory i.e., Shandong Sinoglory and Beijing Shunxin go up and down completely randomly.
Pair Corralation between Shandong Sinoglory and Beijing Shunxin
Assuming the 90 days trading horizon Shandong Sinoglory is expected to generate 1.28 times less return on investment than Beijing Shunxin. But when comparing it to its historical volatility, Shandong Sinoglory Health is 1.31 times less risky than Beijing Shunxin. It trades about 0.09 of its potential returns per unit of risk. Beijing Shunxin Agriculture is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,412 in Beijing Shunxin Agriculture on October 18, 2024 and sell it today you would earn a total of 298.00 from holding Beijing Shunxin Agriculture or generate 21.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sinoglory Health vs. Beijing Shunxin Agriculture
Performance |
| Timeline |
| Shandong Sinoglory Health |
| Beijing Shunxin Agri |
Shandong Sinoglory and Beijing Shunxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sinoglory and Beijing Shunxin
The main advantage of trading using opposite Shandong Sinoglory and Beijing Shunxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sinoglory position performs unexpectedly, Beijing Shunxin 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 Beijing Shunxin will offset losses from the drop in Beijing Shunxin's long position.| Shandong Sinoglory vs. Tianshui Huatian Technology | Shandong Sinoglory vs. Innovative Medical Management | Shandong Sinoglory vs. HUAQIN TECHNOLOGY LTD | Shandong Sinoglory vs. China Asset Management |
| Beijing Shunxin vs. Yunnan Jianzhijia Health Chain | Beijing Shunxin vs. Shandong Sinoglory Health | Beijing Shunxin vs. Hangzhou Minsheng Healthcare | Beijing Shunxin vs. Shenyang Huitian Thermal |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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