Correlation Between Shanghai Yanpu and Joincare Pharmaceutical
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By analyzing existing cross correlation between Shanghai Yanpu Metal and Joincare Pharmaceutical Group, you can compare the effects of market volatilities on Shanghai Yanpu and Joincare Pharmaceutical 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 Yanpu with a short position of Joincare Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and Joincare Pharmaceutical.
Diversification Opportunities for Shanghai Yanpu and Joincare Pharmaceutical
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Joincare is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal and Joincare Pharmaceutical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joincare Pharmaceutical and Shanghai Yanpu 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 Yanpu Metal are associated (or correlated) with Joincare Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joincare Pharmaceutical has no effect on the direction of Shanghai Yanpu i.e., Shanghai Yanpu and Joincare Pharmaceutical go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and Joincare Pharmaceutical
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to under-perform the Joincare Pharmaceutical. In addition to that, Shanghai Yanpu is 1.31 times more volatile than Joincare Pharmaceutical Group. It trades about -0.19 of its total potential returns per unit of risk. Joincare Pharmaceutical Group is currently generating about -0.13 per unit of volatility. If you would invest 1,157 in Joincare Pharmaceutical Group on October 9, 2024 and sell it today you would lose (43.00) from holding Joincare Pharmaceutical Group or give up 3.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Shanghai Yanpu Metal vs. Joincare Pharmaceutical Group
Performance |
| Timeline |
| Shanghai Yanpu Metal |
| Joincare Pharmaceutical |
Shanghai Yanpu and Joincare Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yanpu and Joincare Pharmaceutical
The main advantage of trading using opposite Shanghai Yanpu and Joincare Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu position performs unexpectedly, Joincare Pharmaceutical 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 Joincare Pharmaceutical will offset losses from the drop in Joincare Pharmaceutical's long position.| Shanghai Yanpu vs. Duzhe Publishing Media | Shanghai Yanpu vs. Mango Excellent Media | Shanghai Yanpu vs. Heilongjiang Publishing Media | Shanghai Yanpu vs. Changjiang Publishing Media |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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