Correlation Between Shanghai OPM and Xiamen Bank
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By analyzing existing cross correlation between Shanghai OPM Biosciences and Xiamen Bank Co, you can compare the effects of market volatilities on Shanghai OPM and Xiamen Bank 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 Xiamen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai OPM and Xiamen Bank.
Diversification Opportunities for Shanghai OPM and Xiamen Bank
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Xiamen is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai OPM Biosciences and Xiamen Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Bank 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 Xiamen Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Bank has no effect on the direction of Shanghai OPM i.e., Shanghai OPM and Xiamen Bank go up and down completely randomly.
Pair Corralation between Shanghai OPM and Xiamen Bank
Assuming the 90 days trading horizon Shanghai OPM Biosciences is expected to generate 2.14 times more return on investment than Xiamen Bank. However, Shanghai OPM is 2.14 times more volatile than Xiamen Bank Co. It trades about 0.25 of its potential returns per unit of risk. Xiamen Bank Co is currently generating about 0.11 per unit of risk. If you would invest 3,954 in Shanghai OPM Biosciences on September 4, 2024 and sell it today you would earn a total of 844.00 from holding Shanghai OPM Biosciences or generate 21.35% 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. Xiamen Bank Co
Performance |
| Timeline |
| Shanghai OPM Biosciences |
| Xiamen Bank |
Shanghai OPM and Xiamen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai OPM and Xiamen Bank
The main advantage of trading using opposite Shanghai OPM and Xiamen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai OPM position performs unexpectedly, Xiamen Bank 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 Xiamen Bank will offset losses from the drop in Xiamen Bank'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 |
| Xiamen Bank vs. Industrial and Commercial | Xiamen Bank vs. Agricultural Bank of | Xiamen Bank vs. China Construction Bank | Xiamen Bank vs. Bank of China |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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