Correlation Between Shanghai OPM and Kunwu Jiuding
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By analyzing existing cross correlation between Shanghai OPM Biosciences and Kunwu Jiuding Investment, you can compare the effects of market volatilities on Shanghai OPM and Kunwu Jiuding 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 Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai OPM and Kunwu Jiuding.
Diversification Opportunities for Shanghai OPM and Kunwu Jiuding
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Kunwu is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai OPM Biosciences and Kunwu Jiuding Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunwu Jiuding Investment 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 Kunwu Jiuding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunwu Jiuding Investment has no effect on the direction of Shanghai OPM i.e., Shanghai OPM and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between Shanghai OPM and Kunwu Jiuding
Assuming the 90 days trading horizon Shanghai OPM Biosciences is expected to generate 1.07 times more return on investment than Kunwu Jiuding. However, Shanghai OPM is 1.07 times more volatile than Kunwu Jiuding Investment. It trades about 0.23 of its potential returns per unit of risk. Kunwu Jiuding Investment is currently generating about 0.01 per unit of risk. If you would invest 3,851 in Shanghai OPM Biosciences on September 1, 2024 and sell it today you would earn a total of 765.00 from holding Shanghai OPM Biosciences or generate 19.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shanghai OPM Biosciences vs. Kunwu Jiuding Investment
Performance |
| Timeline |
| Shanghai OPM Biosciences |
| Kunwu Jiuding Investment |
Shanghai OPM and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai OPM and Kunwu Jiuding
The main advantage of trading using opposite Shanghai OPM and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai OPM position performs unexpectedly, Kunwu Jiuding 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 Kunwu Jiuding will offset losses from the drop in Kunwu Jiuding'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 |
| Kunwu Jiuding vs. BeiGene | Kunwu Jiuding vs. Kweichow Moutai Co | Kunwu Jiuding vs. Beijing Roborock Technology | Kunwu Jiuding vs. G bits Network 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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