Correlation Between Shanghai OPM and Sichuan Newsnet
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By analyzing existing cross correlation between Shanghai OPM Biosciences and Sichuan Newsnet Media, you can compare the effects of market volatilities on Shanghai OPM and Sichuan Newsnet 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 Sichuan Newsnet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai OPM and Sichuan Newsnet.
Diversification Opportunities for Shanghai OPM and Sichuan Newsnet
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Sichuan is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai OPM Biosciences and Sichuan Newsnet Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Newsnet Media 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 Sichuan Newsnet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Newsnet Media has no effect on the direction of Shanghai OPM i.e., Shanghai OPM and Sichuan Newsnet go up and down completely randomly.
Pair Corralation between Shanghai OPM and Sichuan Newsnet
Assuming the 90 days trading horizon Shanghai OPM is expected to generate 1.71 times less return on investment than Sichuan Newsnet. But when comparing it to its historical volatility, Shanghai OPM Biosciences is 1.94 times less risky than Sichuan Newsnet. It trades about 0.15 of its potential returns per unit of risk. Sichuan Newsnet Media is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,401 in Sichuan Newsnet Media on November 3, 2024 and sell it today you would earn a total of 123.00 from holding Sichuan Newsnet Media or generate 8.78% 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. Sichuan Newsnet Media
Performance |
| Timeline |
| Shanghai OPM Biosciences |
| Sichuan Newsnet Media |
Shanghai OPM and Sichuan Newsnet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai OPM and Sichuan Newsnet
The main advantage of trading using opposite Shanghai OPM and Sichuan Newsnet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai OPM position performs unexpectedly, Sichuan Newsnet 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 Sichuan Newsnet will offset losses from the drop in Sichuan Newsnet's long position.| Shanghai OPM vs. Hainan Haiqi Transportation | Shanghai OPM vs. Hubeiyichang Transportation Group | Shanghai OPM vs. Jiangyin Jianghua Microelectronics | Shanghai OPM vs. Success Electronics |
| Sichuan Newsnet vs. Cambricon Technologies Corp | Sichuan Newsnet vs. SGSG Sciencetechnology Co | Sichuan Newsnet vs. Loongson Technology Corp | Sichuan Newsnet vs. Zhonghang Electronic Measuring |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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