Correlation Between Goodwill E and Shandong Rike
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By analyzing existing cross correlation between Goodwill E Health and Shandong Rike Chemical, you can compare the effects of market volatilities on Goodwill E and Shandong Rike 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 Goodwill E with a short position of Shandong Rike. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodwill E and Shandong Rike.
Diversification Opportunities for Goodwill E and Shandong Rike
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Goodwill and Shandong is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Goodwill E Health and Shandong Rike Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Rike Chemical and Goodwill E 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 Goodwill E Health are associated (or correlated) with Shandong Rike. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Rike Chemical has no effect on the direction of Goodwill E i.e., Goodwill E and Shandong Rike go up and down completely randomly.
Pair Corralation between Goodwill E and Shandong Rike
Assuming the 90 days trading horizon Goodwill E Health is expected to under-perform the Shandong Rike. But the stock apears to be less risky and, when comparing its historical volatility, Goodwill E Health is 1.12 times less risky than Shandong Rike. The stock trades about -0.13 of its potential returns per unit of risk. The Shandong Rike Chemical is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 551.00 in Shandong Rike Chemical on October 26, 2024 and sell it today you would earn a total of 8.00 from holding Shandong Rike Chemical or generate 1.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goodwill E Health vs. Shandong Rike Chemical
Performance |
| Timeline |
| Goodwill E Health |
| Shandong Rike Chemical |
Goodwill E and Shandong Rike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodwill E and Shandong Rike
The main advantage of trading using opposite Goodwill E and Shandong Rike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodwill E position performs unexpectedly, Shandong Rike 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 Rike will offset losses from the drop in Shandong Rike's long position.| Goodwill E vs. Bank of China | Goodwill E vs. Kweichow Moutai Co | Goodwill E vs. PetroChina Co Ltd | Goodwill E vs. Bank of Communications |
| Shandong Rike vs. Humanwell Healthcare Group | Shandong Rike vs. State Grid InformationCommunication | Shandong Rike vs. Goodwill E Health | Shandong Rike vs. Anhui Huaren Health |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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