Correlation Between Shanghai Rongtai and Blue Sail
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By analyzing existing cross correlation between Shanghai Rongtai Health and Blue Sail Medical, you can compare the effects of market volatilities on Shanghai Rongtai and Blue Sail 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 Rongtai with a short position of Blue Sail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Rongtai and Blue Sail.
Diversification Opportunities for Shanghai Rongtai and Blue Sail
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Blue is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Rongtai Health and Blue Sail Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Sail Medical and Shanghai Rongtai 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 Rongtai Health are associated (or correlated) with Blue Sail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Sail Medical has no effect on the direction of Shanghai Rongtai i.e., Shanghai Rongtai and Blue Sail go up and down completely randomly.
Pair Corralation between Shanghai Rongtai and Blue Sail
Assuming the 90 days trading horizon Shanghai Rongtai Health is expected to generate 0.97 times more return on investment than Blue Sail. However, Shanghai Rongtai Health is 1.03 times less risky than Blue Sail. It trades about 0.11 of its potential returns per unit of risk. Blue Sail Medical is currently generating about 0.09 per unit of risk. If you would invest 1,453 in Shanghai Rongtai Health on September 12, 2024 and sell it today you would earn a total of 62.00 from holding Shanghai Rongtai Health or generate 4.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shanghai Rongtai Health vs. Blue Sail Medical
Performance |
| Timeline |
| Shanghai Rongtai Health |
| Blue Sail Medical |
Shanghai Rongtai and Blue Sail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Rongtai and Blue Sail
The main advantage of trading using opposite Shanghai Rongtai and Blue Sail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Rongtai position performs unexpectedly, Blue Sail 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 Blue Sail will offset losses from the drop in Blue Sail's long position.| Shanghai Rongtai vs. Lutian Machinery Co | Shanghai Rongtai vs. PetroChina Co Ltd | Shanghai Rongtai vs. Bank of China | Shanghai Rongtai vs. Gansu Jiu Steel |
| Blue Sail vs. Cultural Investment Holdings | Blue Sail vs. Gome Telecom Equipment | Blue Sail vs. Holitech Technology Co | Blue Sail vs. Zotye 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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