Correlation Between Shanghai Rendu and Touchstone International
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By analyzing existing cross correlation between Shanghai Rendu Biotechnology and Touchstone International Medical, you can compare the effects of market volatilities on Shanghai Rendu and Touchstone International 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 Touchstone International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Rendu and Touchstone International.
Diversification Opportunities for Shanghai Rendu and Touchstone International
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Touchstone is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Rendu Biotechnology and Touchstone International Medic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone International 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 Touchstone International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone International has no effect on the direction of Shanghai Rendu i.e., Shanghai Rendu and Touchstone International go up and down completely randomly.
Pair Corralation between Shanghai Rendu and Touchstone International
Assuming the 90 days trading horizon Shanghai Rendu Biotechnology is expected to generate 1.63 times more return on investment than Touchstone International. However, Shanghai Rendu is 1.63 times more volatile than Touchstone International Medical. It trades about 0.05 of its potential returns per unit of risk. Touchstone International Medical is currently generating about -0.03 per unit of risk. If you would invest 4,095 in Shanghai Rendu Biotechnology on September 12, 2024 and sell it today you would earn a total of 105.00 from holding Shanghai Rendu Biotechnology or generate 2.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Rendu Biotechnology vs. Touchstone International Medic
Performance |
| Timeline |
| Shanghai Rendu Biote |
| Touchstone International |
Shanghai Rendu and Touchstone International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Rendu and Touchstone International
The main advantage of trading using opposite Shanghai Rendu and Touchstone International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Rendu position performs unexpectedly, Touchstone International 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 Touchstone International will offset losses from the drop in Touchstone International's long position.| Shanghai Rendu vs. Cultural Investment Holdings | Shanghai Rendu vs. Gome Telecom Equipment | Shanghai Rendu vs. Holitech Technology Co | Shanghai Rendu vs. Zotye Automobile 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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