Correlation Between Shanghai Sanyou and Sichuan Jinshi
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By analyzing existing cross correlation between Shanghai Sanyou Medical and Sichuan Jinshi Technology, you can compare the effects of market volatilities on Shanghai Sanyou and Sichuan Jinshi 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 Sichuan Jinshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Sanyou and Sichuan Jinshi.
Diversification Opportunities for Shanghai Sanyou and Sichuan Jinshi
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Sichuan is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Sanyou Medical and Sichuan Jinshi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jinshi Technology 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 Sichuan Jinshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jinshi Technology has no effect on the direction of Shanghai Sanyou i.e., Shanghai Sanyou and Sichuan Jinshi go up and down completely randomly.
Pair Corralation between Shanghai Sanyou and Sichuan Jinshi
Assuming the 90 days trading horizon Shanghai Sanyou Medical is expected to under-perform the Sichuan Jinshi. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Sanyou Medical is 1.07 times less risky than Sichuan Jinshi. The stock trades about -0.03 of its potential returns per unit of risk. The Sichuan Jinshi Technology is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 685.00 in Sichuan Jinshi Technology on September 1, 2024 and sell it today you would earn a total of 28.00 from holding Sichuan Jinshi Technology or generate 4.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Sanyou Medical vs. Sichuan Jinshi Technology
Performance |
| Timeline |
| Shanghai Sanyou Medical |
| Sichuan Jinshi Technology |
Shanghai Sanyou and Sichuan Jinshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Sanyou and Sichuan Jinshi
The main advantage of trading using opposite Shanghai Sanyou and Sichuan Jinshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Sanyou position performs unexpectedly, Sichuan Jinshi 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 Sichuan Jinshi will offset losses from the drop in Sichuan Jinshi's long position.| Shanghai Sanyou vs. Nanjing Putian Telecommunications | Shanghai Sanyou vs. Shenzhen Hifuture Electric | Shanghai Sanyou vs. Tianjin Realty Development | Shanghai Sanyou vs. Shenyang Huitian Thermal |
| Sichuan Jinshi vs. Time Publishing and | Sichuan Jinshi vs. CareRay Digital Medical | Sichuan Jinshi vs. Shanghai Sanyou Medical | Sichuan Jinshi vs. Heilongjiang 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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