Correlation Between Shanghai CEO and BrightGene Bio

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Shanghai CEO and BrightGene Bio at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Shanghai CEO and BrightGene Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shanghai CEO Environmental and BrightGene Bio Medical, you can compare the effects of market volatilities on Shanghai CEO and BrightGene Bio 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 CEO with a short position of BrightGene Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai CEO and BrightGene Bio.

Diversification Opportunities for Shanghai CEO and BrightGene Bio

0.73
  Correlation Coefficient

Poor diversification

The 3 months correlation between Shanghai and BrightGene is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai CEO Environmental and BrightGene Bio Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BrightGene Bio Medical and Shanghai CEO 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 CEO Environmental are associated (or correlated) with BrightGene Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BrightGene Bio Medical has no effect on the direction of Shanghai CEO i.e., Shanghai CEO and BrightGene Bio go up and down completely randomly.

Pair Corralation between Shanghai CEO and BrightGene Bio

Assuming the 90 days trading horizon Shanghai CEO Environmental is expected to under-perform the BrightGene Bio. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai CEO Environmental is 1.01 times less risky than BrightGene Bio. The stock trades about -0.15 of its potential returns per unit of risk. The BrightGene Bio Medical is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  3,196  in BrightGene Bio Medical on October 30, 2024 and sell it today you would lose (104.00) from holding BrightGene Bio Medical or give up 3.25% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Shanghai CEO Environmental  vs.  BrightGene Bio Medical

 Performance 
       Timeline  
Shanghai CEO Environ 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Shanghai CEO Environmental has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
BrightGene Bio Medical 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in BrightGene Bio Medical are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, BrightGene Bio is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Shanghai CEO and BrightGene Bio Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Shanghai CEO and BrightGene Bio

The main advantage of trading using opposite Shanghai CEO and BrightGene Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai CEO position performs unexpectedly, BrightGene Bio 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 BrightGene Bio will offset losses from the drop in BrightGene Bio's long position.
Shanghai CEO vs. China Petroleum Chemical
Shanghai CEO vs. PetroChina Co Ltd
Shanghai CEO vs. China State Construction
Shanghai CEO vs. China Railway Group
The idea behind Shanghai CEO Environmental and BrightGene Bio Medical pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
BrightGene Bio vs. Guangzhou Dongfang Hotel
BrightGene Bio vs. Tianshui Huatian Technology
BrightGene Bio vs. Jiujiang Shanshui Technology
BrightGene Bio vs. Jiangsu Financial Leasing
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.

Other Complementary Tools

Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY