Correlation Between Shanghai OPM and XinJiang GuoTong
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By analyzing existing cross correlation between Shanghai OPM Biosciences and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Shanghai OPM and XinJiang GuoTong 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 OPM with a short position of XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai OPM and XinJiang GuoTong.
Diversification Opportunities for Shanghai OPM and XinJiang GuoTong
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and XinJiang is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai OPM Biosciences and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline and Shanghai OPM 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 OPM Biosciences are associated (or correlated) with XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of Shanghai OPM i.e., Shanghai OPM and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Shanghai OPM and XinJiang GuoTong
Assuming the 90 days trading horizon Shanghai OPM Biosciences is expected to under-perform the XinJiang GuoTong. In addition to that, Shanghai OPM is 1.12 times more volatile than XinJiang GuoTong Pipeline. It trades about -0.02 of its total potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about 0.0 per unit of volatility. If you would invest 1,227 in XinJiang GuoTong Pipeline on November 27, 2024 and sell it today you would lose (289.00) from holding XinJiang GuoTong Pipeline or give up 23.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai OPM Biosciences vs. XinJiang GuoTong Pipeline
Performance |
| Timeline |
| Shanghai OPM Biosciences |
| XinJiang GuoTong Pipeline |
Shanghai OPM and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai OPM and XinJiang GuoTong
The main advantage of trading using opposite Shanghai OPM and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai OPM position performs unexpectedly, XinJiang GuoTong 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 XinJiang GuoTong will offset losses from the drop in XinJiang GuoTong's long position.| Shanghai OPM vs. Ligao Foods CoLtd | Shanghai OPM vs. Jiangxi Sunshine Dairy | Shanghai OPM vs. Suzhou Weizhixiang Food | Shanghai OPM vs. Guangzhou Zhujiang Brewery |
| XinJiang GuoTong vs. King Strong New Material | XinJiang GuoTong vs. Eastern Communications Co | XinJiang GuoTong vs. Jilin OLED Material | XinJiang GuoTong vs. Tianjin Pengling Rubber |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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