Correlation Between Shanghai Rightongene and Shandong Ruifeng
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By analyzing existing cross correlation between Shanghai Rightongene Biotechnology and Shandong Ruifeng Chemical, you can compare the effects of market volatilities on Shanghai Rightongene and Shandong Ruifeng 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 Shandong Ruifeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Rightongene and Shandong Ruifeng.
Diversification Opportunities for Shanghai Rightongene and Shandong Ruifeng
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Shandong is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Rightongene Biotechno and Shandong Ruifeng Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Ruifeng Chemical 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 Shandong Ruifeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Ruifeng Chemical has no effect on the direction of Shanghai Rightongene i.e., Shanghai Rightongene and Shandong Ruifeng go up and down completely randomly.
Pair Corralation between Shanghai Rightongene and Shandong Ruifeng
Assuming the 90 days trading horizon Shanghai Rightongene is expected to generate 2.42 times less return on investment than Shandong Ruifeng. But when comparing it to its historical volatility, Shanghai Rightongene Biotechnology is 1.08 times less risky than Shandong Ruifeng. It trades about 0.11 of its potential returns per unit of risk. Shandong Ruifeng Chemical is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 986.00 in Shandong Ruifeng Chemical on August 25, 2024 and sell it today you would earn a total of 272.00 from holding Shandong Ruifeng Chemical or generate 27.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shanghai Rightongene Biotechno vs. Shandong Ruifeng Chemical
Performance |
| Timeline |
| Shanghai Rightongene |
| Shandong Ruifeng Chemical |
Shanghai Rightongene and Shandong Ruifeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Rightongene and Shandong Ruifeng
The main advantage of trading using opposite Shanghai Rightongene and Shandong Ruifeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Rightongene position performs unexpectedly, Shandong Ruifeng 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 Shandong Ruifeng will offset losses from the drop in Shandong Ruifeng's long position.| Shanghai Rightongene vs. Industrial and Commercial | Shanghai Rightongene vs. China Construction Bank | Shanghai Rightongene vs. Agricultural Bank of | Shanghai Rightongene vs. Bank of China |
| Shandong Ruifeng vs. Dalian Thermal Power | Shandong Ruifeng vs. Shandong Mining Machinery | Shandong Ruifeng vs. Changjiang Publishing Media | Shandong Ruifeng vs. Guangzhou Restaurants Group |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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