Correlation Between Shanghai Rongtai and Offcn Education
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By analyzing existing cross correlation between Shanghai Rongtai Health and Offcn Education Technology, you can compare the effects of market volatilities on Shanghai Rongtai and Offcn Education 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 Offcn Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Rongtai and Offcn Education.
Diversification Opportunities for Shanghai Rongtai and Offcn Education
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Offcn is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Rongtai Health and Offcn Education Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Offcn Education Tech 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 Offcn Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Offcn Education Tech has no effect on the direction of Shanghai Rongtai i.e., Shanghai Rongtai and Offcn Education go up and down completely randomly.
Pair Corralation between Shanghai Rongtai and Offcn Education
Assuming the 90 days trading horizon Shanghai Rongtai Health is expected to generate 0.43 times more return on investment than Offcn Education. However, Shanghai Rongtai Health is 2.33 times less risky than Offcn Education. It trades about 0.18 of its potential returns per unit of risk. Offcn Education Technology is currently generating about -0.02 per unit of risk. If you would invest 1,389 in Shanghai Rongtai Health on September 1, 2024 and sell it today you would earn a total of 97.00 from holding Shanghai Rongtai Health or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Rongtai Health vs. Offcn Education Technology
Performance |
| Timeline |
| Shanghai Rongtai Health |
| Offcn Education Tech |
Shanghai Rongtai and Offcn Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Rongtai and Offcn Education
The main advantage of trading using opposite Shanghai Rongtai and Offcn Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Rongtai position performs unexpectedly, Offcn Education 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 Offcn Education will offset losses from the drop in Offcn Education's long position.| Shanghai Rongtai vs. Hongrun Construction Group | Shanghai Rongtai vs. Tengda Construction Group | Shanghai Rongtai vs. Xiangyang Automobile Bearing | Shanghai Rongtai vs. Chongqing Changan Automobile |
| Offcn Education vs. Industrial and Commercial | Offcn Education vs. China Construction Bank | Offcn Education vs. Agricultural Bank of | Offcn Education vs. Bank of China |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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