Correlation Between Shanghai Sanyou and Chengdu Spaceon
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By analyzing existing cross correlation between Shanghai Sanyou Medical and Chengdu Spaceon Electronics, you can compare the effects of market volatilities on Shanghai Sanyou and Chengdu Spaceon 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 Sanyou with a short position of Chengdu Spaceon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Sanyou and Chengdu Spaceon.
Diversification Opportunities for Shanghai Sanyou and Chengdu Spaceon
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Chengdu is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Sanyou Medical and Chengdu Spaceon Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Spaceon Elec and Shanghai Sanyou 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 Sanyou Medical are associated (or correlated) with Chengdu Spaceon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Spaceon Elec has no effect on the direction of Shanghai Sanyou i.e., Shanghai Sanyou and Chengdu Spaceon go up and down completely randomly.
Pair Corralation between Shanghai Sanyou and Chengdu Spaceon
Assuming the 90 days trading horizon Shanghai Sanyou Medical is expected to generate 1.36 times more return on investment than Chengdu Spaceon. However, Shanghai Sanyou is 1.36 times more volatile than Chengdu Spaceon Electronics. It trades about -0.14 of its potential returns per unit of risk. Chengdu Spaceon Electronics is currently generating about -0.23 per unit of risk. If you would invest 2,060 in Shanghai Sanyou Medical on October 30, 2024 and sell it today you would lose (188.00) from holding Shanghai Sanyou Medical or give up 9.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Sanyou Medical vs. Chengdu Spaceon Electronics
Performance |
| Timeline |
| Shanghai Sanyou Medical |
| Chengdu Spaceon Elec |
Shanghai Sanyou and Chengdu Spaceon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Sanyou and Chengdu Spaceon
The main advantage of trading using opposite Shanghai Sanyou and Chengdu Spaceon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Sanyou position performs unexpectedly, Chengdu Spaceon 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 Chengdu Spaceon will offset losses from the drop in Chengdu Spaceon's long position.| Shanghai Sanyou vs. Agricultural Bank of | Shanghai Sanyou vs. Industrial and Commercial | Shanghai Sanyou vs. Bank of China | Shanghai Sanyou vs. China Construction Bank |
| Chengdu Spaceon vs. Hubei Xingfa Chemicals | Chengdu Spaceon vs. Yingde Greatchem Chemicals | Chengdu Spaceon vs. Jiujiang Shanshui Technology | Chengdu Spaceon vs. Linewell Software Co |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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