Correlation Between Shandong Sinoglory and By Health
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By analyzing existing cross correlation between Shandong Sinoglory Health and By health, you can compare the effects of market volatilities on Shandong Sinoglory and By Health 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 By Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sinoglory and By Health.
Diversification Opportunities for Shandong Sinoglory and By Health
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and 300146 is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sinoglory Health and By health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on By health 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 By Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of By health has no effect on the direction of Shandong Sinoglory i.e., Shandong Sinoglory and By Health go up and down completely randomly.
Pair Corralation between Shandong Sinoglory and By Health
Assuming the 90 days trading horizon Shandong Sinoglory Health is expected to generate 0.94 times more return on investment than By Health. However, Shandong Sinoglory Health is 1.07 times less risky than By Health. It trades about 0.03 of its potential returns per unit of risk. By health is currently generating about -0.05 per unit of risk. If you would invest 1,182 in Shandong Sinoglory Health on September 3, 2024 and sell it today you would earn a total of 71.00 from holding Shandong Sinoglory Health or generate 6.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sinoglory Health vs. By health
Performance |
| Timeline |
| Shandong Sinoglory Health |
| By health |
Shandong Sinoglory and By Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sinoglory and By Health
The main advantage of trading using opposite Shandong Sinoglory and By Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sinoglory position performs unexpectedly, By Health 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 By Health will offset losses from the drop in By Health's long position.| Shandong Sinoglory vs. Beijing Wantai Biological | Shandong Sinoglory vs. Aluminum Corp of | Shandong Sinoglory vs. COL Digital Publishing | Shandong Sinoglory vs. Shaanxi Meineng Clean |
| By Health vs. Beijing Wantai Biological | By Health vs. Aluminum Corp of | By Health vs. COL Digital Publishing | By Health vs. Shaanxi Meineng Clean |
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.
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