Correlation Between Shanghai Rendu and Zhongfu Information
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Rendu Biotechnology and Zhongfu Information, you can compare the effects of market volatilities on Shanghai Rendu and Zhongfu Information 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 Rendu with a short position of Zhongfu Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Rendu and Zhongfu Information.
Diversification Opportunities for Shanghai Rendu and Zhongfu Information
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Zhongfu is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Rendu Biotechnology and Zhongfu Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongfu Information and Shanghai Rendu 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 Rendu Biotechnology are associated (or correlated) with Zhongfu Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongfu Information has no effect on the direction of Shanghai Rendu i.e., Shanghai Rendu and Zhongfu Information go up and down completely randomly.
Pair Corralation between Shanghai Rendu and Zhongfu Information
Assuming the 90 days trading horizon Shanghai Rendu Biotechnology is expected to generate 0.6 times more return on investment than Zhongfu Information. However, Shanghai Rendu Biotechnology is 1.65 times less risky than Zhongfu Information. It trades about -0.06 of its potential returns per unit of risk. Zhongfu Information is currently generating about -0.04 per unit of risk. If you would invest 3,815 in Shanghai Rendu Biotechnology on December 31, 2024 and sell it today you would lose (97.00) from holding Shanghai Rendu Biotechnology or give up 2.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Rendu Biotechnology vs. Zhongfu Information
Performance |
| Timeline |
| Shanghai Rendu Biote |
| Zhongfu Information |
Shanghai Rendu and Zhongfu Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Rendu and Zhongfu Information
The main advantage of trading using opposite Shanghai Rendu and Zhongfu Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Rendu position performs unexpectedly, Zhongfu Information 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 Zhongfu Information will offset losses from the drop in Zhongfu Information's long position.| Shanghai Rendu vs. Zhangjiagang Elegant Home | Shanghai Rendu vs. AVCON Information Tech | Shanghai Rendu vs. Northking Information Technology | Shanghai Rendu vs. YLZ Information Tech |
| Zhongfu Information vs. Dingli Communications Corp | Zhongfu Information vs. Shanghai Jinfeng Wine | Zhongfu Information vs. Jiangxi Hengda Hi Tech | Zhongfu Information vs. Ningbo Ligong Online |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |