Correlation Between Sichuan Teway and Shanghai Sanyou
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By analyzing existing cross correlation between Sichuan Teway Food and Shanghai Sanyou Medical, you can compare the effects of market volatilities on Sichuan Teway and Shanghai Sanyou 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 Sichuan Teway with a short position of Shanghai Sanyou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Teway and Shanghai Sanyou.
Diversification Opportunities for Sichuan Teway and Shanghai Sanyou
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sichuan and Shanghai is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Teway Food and Shanghai Sanyou Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Sanyou Medical and Sichuan Teway 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 Sichuan Teway Food are associated (or correlated) with Shanghai Sanyou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Sanyou Medical has no effect on the direction of Sichuan Teway i.e., Sichuan Teway and Shanghai Sanyou go up and down completely randomly.
Pair Corralation between Sichuan Teway and Shanghai Sanyou
Assuming the 90 days trading horizon Sichuan Teway Food is expected to under-perform the Shanghai Sanyou. But the stock apears to be less risky and, when comparing its historical volatility, Sichuan Teway Food is 1.55 times less risky than Shanghai Sanyou. The stock trades about -0.2 of its potential returns per unit of risk. The Shanghai Sanyou Medical is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,080 in Shanghai Sanyou Medical on October 18, 2024 and sell it today you would lose (26.00) from holding Shanghai Sanyou Medical or give up 1.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Teway Food vs. Shanghai Sanyou Medical
Performance |
| Timeline |
| Sichuan Teway Food |
| Shanghai Sanyou Medical |
Sichuan Teway and Shanghai Sanyou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Teway and Shanghai Sanyou
The main advantage of trading using opposite Sichuan Teway and Shanghai Sanyou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Teway position performs unexpectedly, Shanghai Sanyou 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 Shanghai Sanyou will offset losses from the drop in Shanghai Sanyou's long position.| Sichuan Teway vs. Sunny Loan Top | Sichuan Teway vs. Southern PublishingMedia Co | Sichuan Teway vs. Jiangsu Phoenix Publishing | Sichuan Teway vs. Zhongshan Public Utilities |
| Shanghai Sanyou vs. Iat Automobile Technology | Shanghai Sanyou vs. Cultural Investment Holdings | Shanghai Sanyou vs. Metro Investment Development | Shanghai Sanyou vs. Sinomach Automobile 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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