Correlation Between Oppein Home and Shenzhen SDG
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By analyzing existing cross correlation between Oppein Home Group and Shenzhen SDG Information, you can compare the effects of market volatilities on Oppein Home and Shenzhen SDG 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 Oppein Home with a short position of Shenzhen SDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppein Home and Shenzhen SDG.
Diversification Opportunities for Oppein Home and Shenzhen SDG
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oppein and Shenzhen is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Oppein Home Group and Shenzhen SDG Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen SDG Information and Oppein Home 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 Oppein Home Group are associated (or correlated) with Shenzhen SDG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen SDG Information has no effect on the direction of Oppein Home i.e., Oppein Home and Shenzhen SDG go up and down completely randomly.
Pair Corralation between Oppein Home and Shenzhen SDG
Assuming the 90 days trading horizon Oppein Home Group is expected to under-perform the Shenzhen SDG. But the stock apears to be less risky and, when comparing its historical volatility, Oppein Home Group is 1.31 times less risky than Shenzhen SDG. The stock trades about -0.03 of its potential returns per unit of risk. The Shenzhen SDG Information is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 851.00 in Shenzhen SDG Information on November 1, 2024 and sell it today you would lose (289.00) from holding Shenzhen SDG Information or give up 33.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppein Home Group vs. Shenzhen SDG Information
Performance |
| Timeline |
| Oppein Home Group |
| Shenzhen SDG Information |
Oppein Home and Shenzhen SDG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppein Home and Shenzhen SDG
The main advantage of trading using opposite Oppein Home and Shenzhen SDG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppein Home position performs unexpectedly, Shenzhen SDG 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 Shenzhen SDG will offset losses from the drop in Shenzhen SDG's long position.| Oppein Home vs. Jilin Jlu Communication | Oppein Home vs. Songz Automobile Air | Oppein Home vs. Tongyu Communication | Oppein Home vs. Dongfeng Automobile Co |
| Shenzhen SDG vs. Jiangsu Financial Leasing | Shenzhen SDG vs. AUPU Home Style | Shenzhen SDG vs. Fujian Oriental Silver | Shenzhen SDG vs. Oppein Home Group |
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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