Correlation Between Shanghai OPM and Shenzhen Silver
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By analyzing existing cross correlation between Shanghai OPM Biosciences and Shenzhen Silver Basis, you can compare the effects of market volatilities on Shanghai OPM and Shenzhen Silver 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 Shenzhen Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai OPM and Shenzhen Silver.
Diversification Opportunities for Shanghai OPM and Shenzhen Silver
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Shenzhen is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai OPM Biosciences and Shenzhen Silver Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Silver Basis 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 Shenzhen Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Silver Basis has no effect on the direction of Shanghai OPM i.e., Shanghai OPM and Shenzhen Silver go up and down completely randomly.
Pair Corralation between Shanghai OPM and Shenzhen Silver
Assuming the 90 days trading horizon Shanghai OPM Biosciences is expected to generate 1.11 times more return on investment than Shenzhen Silver. However, Shanghai OPM is 1.11 times more volatile than Shenzhen Silver Basis. It trades about 0.19 of its potential returns per unit of risk. Shenzhen Silver Basis is currently generating about 0.16 per unit of risk. If you would invest 2,650 in Shanghai OPM Biosciences on September 12, 2024 and sell it today you would earn a total of 1,738 from holding Shanghai OPM Biosciences or generate 65.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai OPM Biosciences vs. Shenzhen Silver Basis
Performance |
| Timeline |
| Shanghai OPM Biosciences |
| Shenzhen Silver Basis |
Shanghai OPM and Shenzhen Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai OPM and Shenzhen Silver
The main advantage of trading using opposite Shanghai OPM and Shenzhen Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai OPM position performs unexpectedly, Shenzhen Silver 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 Shenzhen Silver will offset losses from the drop in Shenzhen Silver's long position.| Shanghai OPM vs. Western Superconducting Tech | Shanghai OPM vs. Shenzhen Centralcon Investment | Shanghai OPM vs. Kuangda Technology Group | Shanghai OPM vs. Changchun UP Optotech |
| Shenzhen Silver vs. Hunan Mendale Hometextile | Shenzhen Silver vs. Oppein Home Group | Shenzhen Silver vs. Chengdu Spaceon Electronics | Shenzhen Silver vs. Sanbo Hospital Management |
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 Stocks Directory module to find actively traded stocks across global markets.
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