Correlation Between Shanghai Rightongene and Loongson Technology
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By analyzing existing cross correlation between Shanghai Rightongene Biotechnology and Loongson Technology Corp, you can compare the effects of market volatilities on Shanghai Rightongene and Loongson Technology 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 Loongson Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Rightongene and Loongson Technology.
Diversification Opportunities for Shanghai Rightongene and Loongson Technology
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Loongson is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Rightongene Biotechno and Loongson Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loongson Technology Corp 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 Loongson Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loongson Technology Corp has no effect on the direction of Shanghai Rightongene i.e., Shanghai Rightongene and Loongson Technology go up and down completely randomly.
Pair Corralation between Shanghai Rightongene and Loongson Technology
Assuming the 90 days trading horizon Shanghai Rightongene is expected to generate 1.57 times less return on investment than Loongson Technology. But when comparing it to its historical volatility, Shanghai Rightongene Biotechnology is 1.12 times less risky than Loongson Technology. It trades about 0.15 of its potential returns per unit of risk. Loongson Technology Corp is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 9,117 in Loongson Technology Corp on September 3, 2024 and sell it today you would earn a total of 7,403 from holding Loongson Technology Corp or generate 81.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Rightongene Biotechno vs. Loongson Technology Corp
Performance |
| Timeline |
| Shanghai Rightongene |
| Loongson Technology Corp |
Shanghai Rightongene and Loongson Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Rightongene and Loongson Technology
The main advantage of trading using opposite Shanghai Rightongene and Loongson Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Rightongene position performs unexpectedly, Loongson Technology 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 Loongson Technology will offset losses from the drop in Loongson Technology's long position.| Shanghai Rightongene vs. Chengdu Kanghua Biological | Shanghai Rightongene vs. Beijing Wantai Biological | Shanghai Rightongene vs. Suzhou Novoprotein Scientific | Shanghai Rightongene vs. Aluminum Corp of |
| Loongson Technology vs. Anhui Deli Household | Loongson Technology vs. Der International Home | Loongson Technology vs. Mengtian Home Group | Loongson Technology vs. Guangdong Qunxing Toys |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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