Correlation Between Shanghai Shuixing and Chison Medical
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By analyzing existing cross correlation between Shanghai Shuixing Home and Chison Medical Technologies, you can compare the effects of market volatilities on Shanghai Shuixing and Chison Medical 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 Shanghai Shuixing with a short position of Chison Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shuixing and Chison Medical.
Diversification Opportunities for Shanghai Shuixing and Chison Medical
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shanghai and Chison is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shuixing Home and Chison Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chison Medical Techn and Shanghai Shuixing 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 Shanghai Shuixing Home are associated (or correlated) with Chison Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chison Medical Techn has no effect on the direction of Shanghai Shuixing i.e., Shanghai Shuixing and Chison Medical go up and down completely randomly.
Pair Corralation between Shanghai Shuixing and Chison Medical
If you would invest 0.00 in Chison Medical Technologies on November 8, 2024 and sell it today you would earn a total of 0.00 from holding Chison Medical Technologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Shuixing Home vs. Chison Medical Technologies
Performance |
| Timeline |
| Shanghai Shuixing Home |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Chison Medical Techn |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Shanghai Shuixing and Chison Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Shuixing and Chison Medical
The main advantage of trading using opposite Shanghai Shuixing and Chison Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shuixing position performs unexpectedly, Chison Medical 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 Chison Medical will offset losses from the drop in Chison Medical's long position.The idea behind Shanghai Shuixing Home and Chison Medical Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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