Correlation Between Sino Medical and Shenzhen Glory
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By analyzing existing cross correlation between Sino Medical Sciences and Shenzhen Glory Medical, you can compare the effects of market volatilities on Sino Medical and Shenzhen Glory 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 Sino Medical with a short position of Shenzhen Glory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Medical and Shenzhen Glory.
Diversification Opportunities for Sino Medical and Shenzhen Glory
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sino and Shenzhen is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Sino Medical Sciences and Shenzhen Glory Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Glory Medical and Sino Medical 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 Sino Medical Sciences are associated (or correlated) with Shenzhen Glory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Glory Medical has no effect on the direction of Sino Medical i.e., Sino Medical and Shenzhen Glory go up and down completely randomly.
Pair Corralation between Sino Medical and Shenzhen Glory
Assuming the 90 days trading horizon Sino Medical Sciences is expected to generate 2.02 times more return on investment than Shenzhen Glory. However, Sino Medical is 2.02 times more volatile than Shenzhen Glory Medical. It trades about 0.14 of its potential returns per unit of risk. Shenzhen Glory Medical is currently generating about 0.09 per unit of risk. If you would invest 959.00 in Sino Medical Sciences on September 1, 2024 and sell it today you would earn a total of 127.00 from holding Sino Medical Sciences or generate 13.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sino Medical Sciences vs. Shenzhen Glory Medical
Performance |
| Timeline |
| Sino Medical Sciences |
| Shenzhen Glory Medical |
Sino Medical and Shenzhen Glory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Medical and Shenzhen Glory
The main advantage of trading using opposite Sino Medical and Shenzhen Glory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Medical position performs unexpectedly, Shenzhen Glory 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 Shenzhen Glory will offset losses from the drop in Shenzhen Glory's long position.| Sino Medical vs. Nanjing Putian Telecommunications | Sino Medical vs. Shenzhen Hifuture Electric | Sino Medical vs. Tianjin Realty Development | Sino Medical vs. Shenyang Huitian Thermal |
| Shenzhen Glory vs. Industrial and Commercial | Shenzhen Glory vs. Agricultural Bank of | Shenzhen Glory vs. China Construction Bank | Shenzhen Glory vs. Bank of China |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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