Correlation Between Shanghai Sanyou and Goke Microelectronics
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By analyzing existing cross correlation between Shanghai Sanyou Medical and Goke Microelectronics Co, you can compare the effects of market volatilities on Shanghai Sanyou and Goke Microelectronics 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 Goke Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Sanyou and Goke Microelectronics.
Diversification Opportunities for Shanghai Sanyou and Goke Microelectronics
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Goke is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Sanyou Medical and Goke Microelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goke Microelectronics 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 Goke Microelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goke Microelectronics has no effect on the direction of Shanghai Sanyou i.e., Shanghai Sanyou and Goke Microelectronics go up and down completely randomly.
Pair Corralation between Shanghai Sanyou and Goke Microelectronics
Assuming the 90 days trading horizon Shanghai Sanyou Medical is expected to under-perform the Goke Microelectronics. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Sanyou Medical is 1.25 times less risky than Goke Microelectronics. The stock trades about -0.01 of its potential returns per unit of risk. The Goke Microelectronics Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 8,953 in Goke Microelectronics Co on September 29, 2024 and sell it today you would lose (1,815) from holding Goke Microelectronics Co or give up 20.27% 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. Goke Microelectronics Co
Performance |
| Timeline |
| Shanghai Sanyou Medical |
| Goke Microelectronics |
Shanghai Sanyou and Goke Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Sanyou and Goke Microelectronics
The main advantage of trading using opposite Shanghai Sanyou and Goke Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Sanyou position performs unexpectedly, Goke Microelectronics 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 Goke Microelectronics will offset losses from the drop in Goke Microelectronics' long position.| Shanghai Sanyou vs. Shanghai Ziyan Foods | Shanghai Sanyou vs. Sichuan Teway Food | Shanghai Sanyou vs. Guilin Seamild Foods | Shanghai Sanyou vs. Youyou Foods 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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