Correlation Between Sino Medical and Shanghai Zhangjiang
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By analyzing existing cross correlation between Sino Medical Sciences and Shanghai Zhangjiang Hi Tech, you can compare the effects of market volatilities on Sino Medical and Shanghai Zhangjiang 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 Shanghai Zhangjiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Medical and Shanghai Zhangjiang.
Diversification Opportunities for Sino Medical and Shanghai Zhangjiang
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sino and Shanghai is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Sino Medical Sciences and Shanghai Zhangjiang Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Zhangjiang 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 Shanghai Zhangjiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Zhangjiang has no effect on the direction of Sino Medical i.e., Sino Medical and Shanghai Zhangjiang go up and down completely randomly.
Pair Corralation between Sino Medical and Shanghai Zhangjiang
Assuming the 90 days trading horizon Sino Medical Sciences is expected to generate 1.18 times more return on investment than Shanghai Zhangjiang. However, Sino Medical is 1.18 times more volatile than Shanghai Zhangjiang Hi Tech. It trades about 0.18 of its potential returns per unit of risk. Shanghai Zhangjiang Hi Tech is currently generating about -0.1 per unit of risk. If you would invest 925.00 in Sino Medical Sciences on September 2, 2024 and sell it today you would earn a total of 161.00 from holding Sino Medical Sciences or generate 17.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sino Medical Sciences vs. Shanghai Zhangjiang Hi Tech
Performance |
| Timeline |
| Sino Medical Sciences |
| Shanghai Zhangjiang |
Sino Medical and Shanghai Zhangjiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Medical and Shanghai Zhangjiang
The main advantage of trading using opposite Sino Medical and Shanghai Zhangjiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Medical position performs unexpectedly, Shanghai Zhangjiang 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 Shanghai Zhangjiang will offset losses from the drop in Shanghai Zhangjiang'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 |
| Shanghai Zhangjiang vs. Shanghai Yanpu Metal | Shanghai Zhangjiang vs. Guangdong Jingyi Metal | Shanghai Zhangjiang vs. Youyou Foods Co | Shanghai Zhangjiang vs. Suzhou Weizhixiang Food |
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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