Correlation Between Shanghai Rightongene and Sinomach General
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By analyzing existing cross correlation between Shanghai Rightongene Biotechnology and Sinomach General Machinery, you can compare the effects of market volatilities on Shanghai Rightongene and Sinomach General 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 Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Rightongene and Sinomach General.
Diversification Opportunities for Shanghai Rightongene and Sinomach General
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Sinomach is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Rightongene Biotechno and Sinomach General Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach General Mac 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 Sinomach General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach General Mac has no effect on the direction of Shanghai Rightongene i.e., Shanghai Rightongene and Sinomach General go up and down completely randomly.
Pair Corralation between Shanghai Rightongene and Sinomach General
Assuming the 90 days trading horizon Shanghai Rightongene Biotechnology is expected to under-perform the Sinomach General. In addition to that, Shanghai Rightongene is 1.13 times more volatile than Sinomach General Machinery. It trades about -0.04 of its total potential returns per unit of risk. Sinomach General Machinery is currently generating about 0.02 per unit of volatility. If you would invest 1,325 in Sinomach General Machinery on October 11, 2024 and sell it today you would earn a total of 139.00 from holding Sinomach General Machinery or generate 10.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Rightongene Biotechno vs. Sinomach General Machinery
Performance |
| Timeline |
| Shanghai Rightongene |
| Sinomach General Mac |
Shanghai Rightongene and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Rightongene and Sinomach General
The main advantage of trading using opposite Shanghai Rightongene and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Rightongene position performs unexpectedly, Sinomach General 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 Sinomach General will offset losses from the drop in Sinomach General's long position.| Shanghai Rightongene vs. Beijing Sanyuan Foods | Shanghai Rightongene vs. Ligao Foods CoLtd | Shanghai Rightongene vs. Guangzhou Seagull Kitchen | Shanghai Rightongene vs. Guilin Seamild Foods |
| Sinomach General vs. Luyin Investment Group | Sinomach General vs. Fujian Anjoy Foods | Sinomach General vs. Bohai Leasing Co | Sinomach General vs. Muyuan Foodstuff 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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