Correlation Between Dongxing Sec and Shanghai Sanyou
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By analyzing existing cross correlation between Dongxing Sec Co and Shanghai Sanyou Medical, you can compare the effects of market volatilities on Dongxing Sec and Shanghai Sanyou 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 Dongxing Sec with a short position of Shanghai Sanyou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and Shanghai Sanyou.
Diversification Opportunities for Dongxing Sec and Shanghai Sanyou
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dongxing and Shanghai is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec Co and Shanghai Sanyou Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Sanyou Medical and Dongxing Sec 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 Dongxing Sec Co are associated (or correlated) with Shanghai Sanyou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Sanyou Medical has no effect on the direction of Dongxing Sec i.e., Dongxing Sec and Shanghai Sanyou go up and down completely randomly.
Pair Corralation between Dongxing Sec and Shanghai Sanyou
Assuming the 90 days trading horizon Dongxing Sec Co is expected to generate 1.01 times more return on investment than Shanghai Sanyou. However, Dongxing Sec is 1.01 times more volatile than Shanghai Sanyou Medical. It trades about 0.19 of its potential returns per unit of risk. Shanghai Sanyou Medical is currently generating about 0.12 per unit of risk. If you would invest 808.00 in Dongxing Sec Co on September 12, 2024 and sell it today you would earn a total of 385.00 from holding Dongxing Sec Co or generate 47.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 98.28% |
Values | Daily Returns |
Dongxing Sec Co vs. Shanghai Sanyou Medical
Performance |
Timeline |
Dongxing Sec |
Shanghai Sanyou Medical |
Dongxing Sec and Shanghai Sanyou Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dongxing Sec and Shanghai Sanyou
The main advantage of trading using opposite Dongxing Sec and Shanghai Sanyou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec position performs unexpectedly, Shanghai Sanyou 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 Sanyou will offset losses from the drop in Shanghai Sanyou's long position.Dongxing Sec vs. Maccura Biotechnology Co | Dongxing Sec vs. Jiangsu GDK Biotechnology | Dongxing Sec vs. Fiberhome Telecommunication Technologies | Dongxing Sec vs. Ningbo MedicalSystem Biotechnology |
Shanghai Sanyou vs. Cultural Investment Holdings | Shanghai Sanyou vs. Gome Telecom Equipment | Shanghai Sanyou vs. Holitech Technology Co | Shanghai Sanyou vs. Zotye Automobile 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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