Correlation Between Shanghai OPM and Autek China
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By analyzing existing cross correlation between Shanghai OPM Biosciences and Autek China, you can compare the effects of market volatilities on Shanghai OPM and Autek China 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 Autek China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai OPM and Autek China.
Diversification Opportunities for Shanghai OPM and Autek China
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Autek is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai OPM Biosciences and Autek China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autek China 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 Autek China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autek China has no effect on the direction of Shanghai OPM i.e., Shanghai OPM and Autek China go up and down completely randomly.
Pair Corralation between Shanghai OPM and Autek China
Assuming the 90 days trading horizon Shanghai OPM Biosciences is expected to generate 1.26 times more return on investment than Autek China. However, Shanghai OPM is 1.26 times more volatile than Autek China. It trades about -0.01 of its potential returns per unit of risk. Autek China is currently generating about -0.02 per unit of risk. If you would invest 7,314 in Shanghai OPM Biosciences on September 4, 2024 and sell it today you would lose (2,516) from holding Shanghai OPM Biosciences or give up 34.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai OPM Biosciences vs. Autek China
Performance |
| Timeline |
| Shanghai OPM Biosciences |
| Autek China |
Shanghai OPM and Autek China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai OPM and Autek China
The main advantage of trading using opposite Shanghai OPM and Autek China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai OPM position performs unexpectedly, Autek China 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 Autek China will offset losses from the drop in Autek China's long position.| Shanghai OPM vs. Kweichow Moutai Co | Shanghai OPM vs. Shenzhen Mindray Bio Medical | Shanghai OPM vs. Jiangsu Pacific Quartz | Shanghai OPM vs. G bits Network Technology |
| Autek China vs. Dalian Zeus Entertainment | Autek China vs. Beijing Bashi Media | Autek China vs. Dazhong Transportation Group | Autek China vs. Shanghai Broadband Technology |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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