Correlation Between Shanghai Sanyou and Der International
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By analyzing existing cross correlation between Shanghai Sanyou Medical and Der International Home, you can compare the effects of market volatilities on Shanghai Sanyou and Der International 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 Sanyou with a short position of Der International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Sanyou and Der International.
Diversification Opportunities for Shanghai Sanyou and Der International
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Der is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Sanyou Medical and Der International Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Der International Home and Shanghai Sanyou 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 Sanyou Medical are associated (or correlated) with Der International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Der International Home has no effect on the direction of Shanghai Sanyou i.e., Shanghai Sanyou and Der International go up and down completely randomly.
Pair Corralation between Shanghai Sanyou and Der International
Assuming the 90 days trading horizon Shanghai Sanyou is expected to generate 30.87 times less return on investment than Der International. But when comparing it to its historical volatility, Shanghai Sanyou Medical is 1.64 times less risky than Der International. It trades about 0.01 of its potential returns per unit of risk. Der International Home is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 490.00 in Der International Home on September 24, 2024 and sell it today you would earn a total of 65.00 from holding Der International Home or generate 13.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Shanghai Sanyou Medical vs. Der International Home
Performance |
Timeline |
Shanghai Sanyou Medical |
Der International Home |
Shanghai Sanyou and Der International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shanghai Sanyou and Der International
The main advantage of trading using opposite Shanghai Sanyou and Der International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Sanyou position performs unexpectedly, Der International 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 Der International will offset losses from the drop in Der International's long position.Shanghai Sanyou vs. New China Life | Shanghai Sanyou vs. Ming Yang Smart | Shanghai Sanyou vs. 159681 | Shanghai Sanyou vs. 159005 |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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