Correlation Between Shanghai OPM and Industrial
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By analyzing existing cross correlation between Shanghai OPM Biosciences and Industrial and Commercial, you can compare the effects of market volatilities on Shanghai OPM and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai OPM and Industrial.
Diversification Opportunities for Shanghai OPM and Industrial
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shanghai and Industrial is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai OPM Biosciences and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Shanghai OPM i.e., Shanghai OPM and Industrial go up and down completely randomly.
Pair Corralation between Shanghai OPM and Industrial
Assuming the 90 days trading horizon Shanghai OPM Biosciences is expected to under-perform the Industrial. In addition to that, Shanghai OPM is 2.97 times more volatile than Industrial and Commercial. It trades about -0.02 of its total potential returns per unit of risk. Industrial and Commercial is currently generating about 0.08 per unit of volatility. If you would invest 403.00 in Industrial and Commercial on August 30, 2024 and sell it today you would earn a total of 217.00 from holding Industrial and Commercial or generate 53.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai OPM Biosciences vs. Industrial and Commercial
Performance |
| Timeline |
| Shanghai OPM Biosciences |
| Industrial and Commercial |
Shanghai OPM and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai OPM and Industrial
The main advantage of trading using opposite Shanghai OPM and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai OPM position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.| Shanghai OPM vs. Kunwu Jiuding Investment | Shanghai OPM vs. Ningbo Ligong Online | Shanghai OPM vs. Henan Shuanghui Investment | Shanghai OPM vs. Bank of Suzhou |
| Industrial vs. Sinofibers Technology Co | Industrial vs. Saurer Intelligent Technology | Industrial vs. Sinocelltech Group | Industrial vs. Dhc Software Co |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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