Correlation Between Shanghai OPM and Shanghai Bailian
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By analyzing existing cross correlation between Shanghai OPM Biosciences and Shanghai Bailian Group, you can compare the effects of market volatilities on Shanghai OPM and Shanghai Bailian 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 Shanghai Bailian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai OPM and Shanghai Bailian.
Diversification Opportunities for Shanghai OPM and Shanghai Bailian
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Shanghai is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai OPM Biosciences and Shanghai Bailian Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Bailian 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 Shanghai Bailian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Bailian has no effect on the direction of Shanghai OPM i.e., Shanghai OPM and Shanghai Bailian go up and down completely randomly.
Pair Corralation between Shanghai OPM and Shanghai Bailian
Assuming the 90 days trading horizon Shanghai OPM is expected to generate 2.26 times less return on investment than Shanghai Bailian. In addition to that, Shanghai OPM is 1.11 times more volatile than Shanghai Bailian Group. It trades about 0.13 of its total potential returns per unit of risk. Shanghai Bailian Group is currently generating about 0.34 per unit of volatility. If you would invest 53.00 in Shanghai Bailian Group on August 30, 2024 and sell it today you would earn a total of 15.00 from holding Shanghai Bailian Group or generate 28.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai OPM Biosciences vs. Shanghai Bailian Group
Performance |
| Timeline |
| Shanghai OPM Biosciences |
| Shanghai Bailian |
Shanghai OPM and Shanghai Bailian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai OPM and Shanghai Bailian
The main advantage of trading using opposite Shanghai OPM and Shanghai Bailian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai OPM position performs unexpectedly, Shanghai Bailian 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 Shanghai Bailian will offset losses from the drop in Shanghai Bailian's long position.| Shanghai OPM vs. Shandong Homey Aquatic | Shanghai OPM vs. Offshore Oil Engineering | Shanghai OPM vs. UE Furniture Co | Shanghai OPM vs. Anhui Jianghuai Automobile |
| Shanghai Bailian vs. Jinhe Biotechnology Co | Shanghai Bailian vs. Changchun BCHT Biotechnology | Shanghai Bailian vs. Bomesc Offshore Engineering | Shanghai Bailian vs. Healthcare 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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