Correlation Between Cinda Securities and Shanghai Junshi
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By analyzing existing cross correlation between Cinda Securities Co and Shanghai Junshi Biosciences, you can compare the effects of market volatilities on Cinda Securities and Shanghai Junshi 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 Cinda Securities with a short position of Shanghai Junshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and Shanghai Junshi.
Diversification Opportunities for Cinda Securities and Shanghai Junshi
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cinda and Shanghai is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co and Shanghai Junshi Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Junshi Bios and Cinda Securities 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 Cinda Securities Co are associated (or correlated) with Shanghai Junshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Junshi Bios has no effect on the direction of Cinda Securities i.e., Cinda Securities and Shanghai Junshi go up and down completely randomly.
Pair Corralation between Cinda Securities and Shanghai Junshi
Assuming the 90 days trading horizon Cinda Securities is expected to generate 1.57 times less return on investment than Shanghai Junshi. But when comparing it to its historical volatility, Cinda Securities Co is 1.11 times less risky than Shanghai Junshi. It trades about 0.02 of its potential returns per unit of risk. Shanghai Junshi Biosciences is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,968 in Shanghai Junshi Biosciences on September 19, 2024 and sell it today you would earn a total of 29.00 from holding Shanghai Junshi Biosciences or generate 0.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Cinda Securities Co vs. Shanghai Junshi Biosciences
Performance |
Timeline |
Cinda Securities |
Shanghai Junshi Bios |
Cinda Securities and Shanghai Junshi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cinda Securities and Shanghai Junshi
The main advantage of trading using opposite Cinda Securities and Shanghai Junshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities position performs unexpectedly, Shanghai Junshi 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 Junshi will offset losses from the drop in Shanghai Junshi's long position.Cinda Securities vs. Zhejiang Huatong Meat | Cinda Securities vs. Chengdu Spaceon Electronics | Cinda Securities vs. Heilongjiang Publishing Media | Cinda Securities vs. JCHX Mining Management |
Shanghai Junshi vs. Industrial and Commercial | Shanghai Junshi vs. China Construction Bank | Shanghai Junshi vs. Bank of China | Shanghai Junshi vs. Agricultural Bank of |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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