Correlation Between Shanghai OPM and Hangzhou Gaoxin
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By analyzing existing cross correlation between Shanghai OPM Biosciences and Hangzhou Gaoxin Rubber, you can compare the effects of market volatilities on Shanghai OPM and Hangzhou Gaoxin 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 Hangzhou Gaoxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai OPM and Hangzhou Gaoxin.
Diversification Opportunities for Shanghai OPM and Hangzhou Gaoxin
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Hangzhou is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai OPM Biosciences and Hangzhou Gaoxin Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Gaoxin Rubber 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 Hangzhou Gaoxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Gaoxin Rubber has no effect on the direction of Shanghai OPM i.e., Shanghai OPM and Hangzhou Gaoxin go up and down completely randomly.
Pair Corralation between Shanghai OPM and Hangzhou Gaoxin
Assuming the 90 days trading horizon Shanghai OPM is expected to generate 11.73 times less return on investment than Hangzhou Gaoxin. But when comparing it to its historical volatility, Shanghai OPM Biosciences is 1.12 times less risky than Hangzhou Gaoxin. It trades about 0.0 of its potential returns per unit of risk. Hangzhou Gaoxin Rubber is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,203 in Hangzhou Gaoxin Rubber on September 1, 2024 and sell it today you would lose (121.00) from holding Hangzhou Gaoxin Rubber or give up 10.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.62% |
| Values | Daily Returns |
Shanghai OPM Biosciences vs. Hangzhou Gaoxin Rubber
Performance |
| Timeline |
| Shanghai OPM Biosciences |
| Hangzhou Gaoxin Rubber |
Shanghai OPM and Hangzhou Gaoxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai OPM and Hangzhou Gaoxin
The main advantage of trading using opposite Shanghai OPM and Hangzhou Gaoxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai OPM position performs unexpectedly, Hangzhou Gaoxin 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 Hangzhou Gaoxin will offset losses from the drop in Hangzhou Gaoxin's long position.| Shanghai OPM vs. Glodon Software Co | Shanghai OPM vs. Sunwave Communications Co | Shanghai OPM vs. Jonjee Hi tech Industrial | Shanghai OPM vs. Guangdong Shenglu Telecommunication |
| Hangzhou Gaoxin vs. Shanghai Yanpu Metal | Hangzhou Gaoxin vs. Ningxia Younglight Chemicals | Hangzhou Gaoxin vs. Dymatic Chemicals | Hangzhou Gaoxin vs. CITIC Metal 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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