Correlation Between Shanghai Lingyun and Allgens Medical
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By analyzing existing cross correlation between Shanghai Lingyun Industries and Allgens Medical Technology, you can compare the effects of market volatilities on Shanghai Lingyun and Allgens Medical 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 Lingyun with a short position of Allgens Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Lingyun and Allgens Medical.
Diversification Opportunities for Shanghai Lingyun and Allgens Medical
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Allgens is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Lingyun Industries and Allgens Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allgens Medical Tech and Shanghai Lingyun 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 Lingyun Industries are associated (or correlated) with Allgens Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allgens Medical Tech has no effect on the direction of Shanghai Lingyun i.e., Shanghai Lingyun and Allgens Medical go up and down completely randomly.
Pair Corralation between Shanghai Lingyun and Allgens Medical
Assuming the 90 days trading horizon Shanghai Lingyun Industries is expected to generate 1.23 times more return on investment than Allgens Medical. However, Shanghai Lingyun is 1.23 times more volatile than Allgens Medical Technology. It trades about -0.01 of its potential returns per unit of risk. Allgens Medical Technology is currently generating about -0.02 per unit of risk. If you would invest 60.00 in Shanghai Lingyun Industries on September 1, 2024 and sell it today you would lose (21.00) from holding Shanghai Lingyun Industries or give up 35.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Lingyun Industries vs. Allgens Medical Technology
Performance |
| Timeline |
| Shanghai Lingyun Ind |
| Allgens Medical Tech |
Shanghai Lingyun and Allgens Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Lingyun and Allgens Medical
The main advantage of trading using opposite Shanghai Lingyun and Allgens Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Lingyun position performs unexpectedly, Allgens Medical 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 Allgens Medical will offset losses from the drop in Allgens Medical's long position.| Shanghai Lingyun vs. Agricultural Bank of | Shanghai Lingyun vs. Industrial and Commercial | Shanghai Lingyun vs. Bank of China | Shanghai Lingyun vs. PetroChina Co Ltd |
| Allgens Medical vs. Nanjing Putian Telecommunications | Allgens Medical vs. Shenzhen Hifuture Electric | Allgens Medical vs. Tianjin Realty Development | Allgens Medical vs. Shenyang Huitian Thermal |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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