Correlation Between Shandong Sinoglory and Guangdong Silvere
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By analyzing existing cross correlation between Shandong Sinoglory Health and Guangdong Silvere Sci, you can compare the effects of market volatilities on Shandong Sinoglory and Guangdong Silvere 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 Guangdong Silvere. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sinoglory and Guangdong Silvere.
Diversification Opportunities for Shandong Sinoglory and Guangdong Silvere
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shandong and Guangdong is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sinoglory Health and Guangdong Silvere Sci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Silvere Sci 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 Guangdong Silvere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Silvere Sci has no effect on the direction of Shandong Sinoglory i.e., Shandong Sinoglory and Guangdong Silvere go up and down completely randomly.
Pair Corralation between Shandong Sinoglory and Guangdong Silvere
Assuming the 90 days trading horizon Shandong Sinoglory Health is expected to generate 0.63 times more return on investment than Guangdong Silvere. However, Shandong Sinoglory Health is 1.58 times less risky than Guangdong Silvere. It trades about 0.18 of its potential returns per unit of risk. Guangdong Silvere Sci is currently generating about 0.06 per unit of risk. If you would invest 1,251 in Shandong Sinoglory Health on September 14, 2024 and sell it today you would earn a total of 87.00 from holding Shandong Sinoglory Health or generate 6.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sinoglory Health vs. Guangdong Silvere Sci
Performance |
| Timeline |
| Shandong Sinoglory Health |
| Guangdong Silvere Sci |
Shandong Sinoglory and Guangdong Silvere Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sinoglory and Guangdong Silvere
The main advantage of trading using opposite Shandong Sinoglory and Guangdong Silvere positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sinoglory position performs unexpectedly, Guangdong Silvere 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 Guangdong Silvere will offset losses from the drop in Guangdong Silvere's long position.| Shandong Sinoglory vs. Nanjing Putian Telecommunications | Shandong Sinoglory vs. Tianjin Realty Development | Shandong Sinoglory vs. Kangyue Technology Co | Shandong Sinoglory vs. Shenzhen Hifuture Electric |
| Guangdong Silvere vs. Jiugui Liquor Co | Guangdong Silvere vs. Air China Ltd | Guangdong Silvere vs. Anhui Huaren Health | Guangdong Silvere vs. Shandong Sinoglory Health |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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