Correlation Between Shanghai OPM and PharmaResources
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By analyzing existing cross correlation between Shanghai OPM Biosciences and PharmaResources Co Ltd, you can compare the effects of market volatilities on Shanghai OPM and PharmaResources 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 PharmaResources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai OPM and PharmaResources.
Diversification Opportunities for Shanghai OPM and PharmaResources
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and PharmaResources is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai OPM Biosciences and PharmaResources Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PharmaResources 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 PharmaResources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PharmaResources has no effect on the direction of Shanghai OPM i.e., Shanghai OPM and PharmaResources go up and down completely randomly.
Pair Corralation between Shanghai OPM and PharmaResources
Assuming the 90 days trading horizon Shanghai OPM Biosciences is expected to under-perform the PharmaResources. In addition to that, Shanghai OPM is 1.05 times more volatile than PharmaResources Co Ltd. It trades about -0.11 of its total potential returns per unit of risk. PharmaResources Co Ltd is currently generating about 0.15 per unit of volatility. If you would invest 2,526 in PharmaResources Co Ltd on September 20, 2024 and sell it today you would earn a total of 209.00 from holding PharmaResources Co Ltd or generate 8.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai OPM Biosciences vs. PharmaResources Co Ltd
Performance |
| Timeline |
| Shanghai OPM Biosciences |
| PharmaResources |
Shanghai OPM and PharmaResources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai OPM and PharmaResources
The main advantage of trading using opposite Shanghai OPM and PharmaResources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai OPM position performs unexpectedly, PharmaResources 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 PharmaResources will offset losses from the drop in PharmaResources' long position.| Shanghai OPM vs. Industrial and Commercial | Shanghai OPM vs. China Construction Bank | Shanghai OPM vs. Bank of China | Shanghai OPM vs. Agricultural Bank of |
| PharmaResources vs. Industrial and Commercial | PharmaResources vs. China Construction Bank | PharmaResources vs. Bank of China | PharmaResources vs. Agricultural Bank of |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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