Correlation Between Shanghai Rendu and Jinduicheng Molybdenum
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By analyzing existing cross correlation between Shanghai Rendu Biotechnology and Jinduicheng Molybdenum Co, you can compare the effects of market volatilities on Shanghai Rendu and Jinduicheng Molybdenum 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 Jinduicheng Molybdenum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Rendu and Jinduicheng Molybdenum.
Diversification Opportunities for Shanghai Rendu and Jinduicheng Molybdenum
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Jinduicheng is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Rendu Biotechnology and Jinduicheng Molybdenum Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinduicheng Molybdenum 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 Jinduicheng Molybdenum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinduicheng Molybdenum has no effect on the direction of Shanghai Rendu i.e., Shanghai Rendu and Jinduicheng Molybdenum go up and down completely randomly.
Pair Corralation between Shanghai Rendu and Jinduicheng Molybdenum
Assuming the 90 days trading horizon Shanghai Rendu Biotechnology is expected to under-perform the Jinduicheng Molybdenum. In addition to that, Shanghai Rendu is 1.51 times more volatile than Jinduicheng Molybdenum Co. It trades about -0.01 of its total potential returns per unit of risk. Jinduicheng Molybdenum Co is currently generating about -0.01 per unit of volatility. If you would invest 1,181 in Jinduicheng Molybdenum Co on December 4, 2024 and sell it today you would lose (165.00) from holding Jinduicheng Molybdenum Co or give up 13.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Rendu Biotechnology vs. Jinduicheng Molybdenum Co
Performance |
| Timeline |
| Shanghai Rendu Biote |
| Jinduicheng Molybdenum |
Shanghai Rendu and Jinduicheng Molybdenum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Rendu and Jinduicheng Molybdenum
The main advantage of trading using opposite Shanghai Rendu and Jinduicheng Molybdenum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Rendu position performs unexpectedly, Jinduicheng Molybdenum 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 Jinduicheng Molybdenum will offset losses from the drop in Jinduicheng Molybdenum's long position.| Shanghai Rendu vs. Xinjiang Tianrun Dairy | Shanghai Rendu vs. Citic Offshore Helicopter | Shanghai Rendu vs. Springsnow Food Group | Shanghai Rendu vs. Sichuan Hebang Biotechnology |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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