Correlation Between Oppein Home and Shandong Sanyuan
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By analyzing existing cross correlation between Oppein Home Group and Shandong Sanyuan Biotechnology, you can compare the effects of market volatilities on Oppein Home and Shandong Sanyuan 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 Shandong Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppein Home and Shandong Sanyuan.
Diversification Opportunities for Oppein Home and Shandong Sanyuan
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oppein and Shandong is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Oppein Home Group and Shandong Sanyuan Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sanyuan Bio 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 Shandong Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sanyuan Bio has no effect on the direction of Oppein Home i.e., Oppein Home and Shandong Sanyuan go up and down completely randomly.
Pair Corralation between Oppein Home and Shandong Sanyuan
Assuming the 90 days trading horizon Oppein Home Group is expected to generate 1.42 times more return on investment than Shandong Sanyuan. However, Oppein Home is 1.42 times more volatile than Shandong Sanyuan Biotechnology. It trades about 0.11 of its potential returns per unit of risk. Shandong Sanyuan Biotechnology is currently generating about 0.03 per unit of risk. If you would invest 4,283 in Oppein Home Group on October 25, 2024 and sell it today you would earn a total of 1,986 from holding Oppein Home Group or generate 46.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppein Home Group vs. Shandong Sanyuan Biotechnology
Performance |
| Timeline |
| Oppein Home Group |
| Shandong Sanyuan Bio |
Oppein Home and Shandong Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppein Home and Shandong Sanyuan
The main advantage of trading using opposite Oppein Home and Shandong Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppein Home position performs unexpectedly, Shandong Sanyuan 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 Shandong Sanyuan will offset losses from the drop in Shandong Sanyuan's long position.| Oppein Home vs. PetroChina Co Ltd | Oppein Home vs. Gansu Jiu Steel | Oppein Home vs. Ming Yang Smart | Oppein Home vs. Aba Chemicals Corp |
| Shandong Sanyuan vs. Agricultural Bank of | Shandong Sanyuan vs. Postal Savings Bank | Shandong Sanyuan vs. Bank of Communications | Shandong Sanyuan vs. China Merchants Bank |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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