Correlation Between Shanghai OPM and Qingdao Hi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai OPM Biosciences and Qingdao Hi Tech Moulds, you can compare the effects of market volatilities on Shanghai OPM and Qingdao Hi 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 Qingdao Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai OPM and Qingdao Hi.
Diversification Opportunities for Shanghai OPM and Qingdao Hi
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Qingdao is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai OPM Biosciences and Qingdao Hi Tech Moulds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Hi Tech 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 Qingdao Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Hi Tech has no effect on the direction of Shanghai OPM i.e., Shanghai OPM and Qingdao Hi go up and down completely randomly.
Pair Corralation between Shanghai OPM and Qingdao Hi
Assuming the 90 days trading horizon Shanghai OPM Biosciences is expected to generate 0.81 times more return on investment than Qingdao Hi. However, Shanghai OPM Biosciences is 1.24 times less risky than Qingdao Hi. It trades about 0.01 of its potential returns per unit of risk. Qingdao Hi Tech Moulds is currently generating about 0.01 per unit of risk. If you would invest 4,655 in Shanghai OPM Biosciences on September 12, 2024 and sell it today you would lose (301.00) from holding Shanghai OPM Biosciences or give up 6.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai OPM Biosciences vs. Qingdao Hi Tech Moulds
Performance |
| Timeline |
| Shanghai OPM Biosciences |
| Qingdao Hi Tech |
Shanghai OPM and Qingdao Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai OPM and Qingdao Hi
The main advantage of trading using opposite Shanghai OPM and Qingdao Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai OPM position performs unexpectedly, Qingdao Hi 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 Qingdao Hi will offset losses from the drop in Qingdao Hi's long position.| Shanghai OPM vs. Kingclean Electric Co | Shanghai OPM vs. Tieling Newcity Investment | Shanghai OPM vs. Xiandai Investment Co | Shanghai OPM vs. Inspur Software Co |
| Qingdao Hi vs. Agricultural Bank of | Qingdao Hi vs. Industrial and Commercial | Qingdao Hi vs. Bank of China | Qingdao Hi vs. PetroChina Co Ltd |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |