Correlation Between Shanghai Rightongene and Rongsheng Petrochemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Rightongene Biotechnology and Rongsheng Petrochemical Co, you can compare the effects of market volatilities on Shanghai Rightongene and Rongsheng Petrochemical 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 Rightongene with a short position of Rongsheng Petrochemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Rightongene and Rongsheng Petrochemical.
Diversification Opportunities for Shanghai Rightongene and Rongsheng Petrochemical
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Rongsheng is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Rightongene Biotechno and Rongsheng Petrochemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rongsheng Petrochemical and Shanghai Rightongene 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 Rightongene Biotechnology are associated (or correlated) with Rongsheng Petrochemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rongsheng Petrochemical has no effect on the direction of Shanghai Rightongene i.e., Shanghai Rightongene and Rongsheng Petrochemical go up and down completely randomly.
Pair Corralation between Shanghai Rightongene and Rongsheng Petrochemical
Assuming the 90 days trading horizon Shanghai Rightongene Biotechnology is expected to generate 1.42 times more return on investment than Rongsheng Petrochemical. However, Shanghai Rightongene is 1.42 times more volatile than Rongsheng Petrochemical Co. It trades about 0.1 of its potential returns per unit of risk. Rongsheng Petrochemical Co is currently generating about -0.12 per unit of risk. If you would invest 1,881 in Shanghai Rightongene Biotechnology on October 31, 2024 and sell it today you would earn a total of 78.00 from holding Shanghai Rightongene Biotechnology or generate 4.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Rightongene Biotechno vs. Rongsheng Petrochemical Co
Performance |
| Timeline |
| Shanghai Rightongene |
| Rongsheng Petrochemical |
Shanghai Rightongene and Rongsheng Petrochemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Rightongene and Rongsheng Petrochemical
The main advantage of trading using opposite Shanghai Rightongene and Rongsheng Petrochemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Rightongene position performs unexpectedly, Rongsheng Petrochemical 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 Rongsheng Petrochemical will offset losses from the drop in Rongsheng Petrochemical's long position.| Shanghai Rightongene vs. Cabio Biotech Wuhan | Shanghai Rightongene vs. Fujian Nanwang Environment | Shanghai Rightongene vs. Jiujiang Shanshui Technology | Shanghai Rightongene vs. Montage Technology 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |