Correlation Between Shandong Sinoglory and Xiamen Jihong
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By analyzing existing cross correlation between Shandong Sinoglory Health and Xiamen Jihong Package, you can compare the effects of market volatilities on Shandong Sinoglory and Xiamen Jihong 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 Xiamen Jihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sinoglory and Xiamen Jihong.
Diversification Opportunities for Shandong Sinoglory and Xiamen Jihong
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and Xiamen is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sinoglory Health and Xiamen Jihong Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Jihong Package 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 Xiamen Jihong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Jihong Package has no effect on the direction of Shandong Sinoglory i.e., Shandong Sinoglory and Xiamen Jihong go up and down completely randomly.
Pair Corralation between Shandong Sinoglory and Xiamen Jihong
Assuming the 90 days trading horizon Shandong Sinoglory Health is expected to generate 0.53 times more return on investment than Xiamen Jihong. However, Shandong Sinoglory Health is 1.89 times less risky than Xiamen Jihong. It trades about -0.43 of its potential returns per unit of risk. Xiamen Jihong Package is currently generating about -0.32 per unit of risk. If you would invest 1,293 in Shandong Sinoglory Health on October 15, 2024 and sell it today you would lose (201.00) from holding Shandong Sinoglory Health or give up 15.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sinoglory Health vs. Xiamen Jihong Package
Performance |
| Timeline |
| Shandong Sinoglory Health |
| Xiamen Jihong Package |
Shandong Sinoglory and Xiamen Jihong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sinoglory and Xiamen Jihong
The main advantage of trading using opposite Shandong Sinoglory and Xiamen Jihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sinoglory position performs unexpectedly, Xiamen Jihong 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 Xiamen Jihong will offset losses from the drop in Xiamen Jihong's long position.| Shandong Sinoglory vs. Guangxi Wuzhou Communications | Shandong Sinoglory vs. Jilin Chemical Fibre | Shandong Sinoglory vs. Wuxi Chemical Equipment | Shandong Sinoglory vs. Quectel Wireless Solutions |
| Xiamen Jihong vs. Rising Nonferrous Metals | Xiamen Jihong vs. Offcn Education Technology | Xiamen Jihong vs. Changjiang Publishing Media | Xiamen Jihong vs. Pengxin International Mining |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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