Correlation Between Oppein Home and Shanghai
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By analyzing existing cross correlation between Oppein Home Group and Shanghai MG Stationery, you can compare the effects of market volatilities on Oppein Home and Shanghai 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 Shanghai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppein Home and Shanghai.
Diversification Opportunities for Oppein Home and Shanghai
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oppein and Shanghai is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Oppein Home Group and Shanghai MG Stationery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai MG Stationery 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 Shanghai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai MG Stationery has no effect on the direction of Oppein Home i.e., Oppein Home and Shanghai go up and down completely randomly.
Pair Corralation between Oppein Home and Shanghai
Assuming the 90 days trading horizon Oppein Home Group is expected to generate 0.92 times more return on investment than Shanghai. However, Oppein Home Group is 1.08 times less risky than Shanghai. It trades about 0.13 of its potential returns per unit of risk. Shanghai MG Stationery is currently generating about 0.04 per unit of risk. If you would invest 7,017 in Oppein Home Group on September 12, 2024 and sell it today you would earn a total of 548.00 from holding Oppein Home Group or generate 7.81% 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. Shanghai MG Stationery
Performance |
| Timeline |
| Oppein Home Group |
| Shanghai MG Stationery |
Oppein Home and Shanghai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppein Home and Shanghai
The main advantage of trading using opposite Oppein Home and Shanghai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppein Home position performs unexpectedly, Shanghai 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 Shanghai will offset losses from the drop in Shanghai's long position.| Oppein Home vs. Shenzhen Centralcon Investment | Oppein Home vs. Easyhome New Retail | Oppein Home vs. Kunwu Jiuding Investment | Oppein Home vs. Heilongjiang Transport Development |
| Shanghai vs. Nanjing Putian Telecommunications | Shanghai vs. Orinko Advanced Plastics | Shanghai vs. King Strong New Material | Shanghai vs. Guangxi Wuzhou Communications |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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