Correlation Between Shanghai OPM and Lepu Medical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai OPM Biosciences and Lepu Medical Tech, you can compare the effects of market volatilities on Shanghai OPM and Lepu 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 OPM with a short position of Lepu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai OPM and Lepu Medical.
Diversification Opportunities for Shanghai OPM and Lepu Medical
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Lepu is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai OPM Biosciences and Lepu Medical Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lepu Medical Tech and Shanghai OPM 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 OPM Biosciences are associated (or correlated) with Lepu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lepu Medical Tech has no effect on the direction of Shanghai OPM i.e., Shanghai OPM and Lepu Medical go up and down completely randomly.
Pair Corralation between Shanghai OPM and Lepu Medical
Assuming the 90 days trading horizon Shanghai OPM Biosciences is expected to under-perform the Lepu Medical. In addition to that, Shanghai OPM is 1.62 times more volatile than Lepu Medical Tech. It trades about -0.11 of its total potential returns per unit of risk. Lepu Medical Tech is currently generating about -0.04 per unit of volatility. If you would invest 1,238 in Lepu Medical Tech on September 20, 2024 and sell it today you would lose (20.00) from holding Lepu Medical Tech or give up 1.62% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Shanghai OPM Biosciences vs. Lepu Medical Tech
Performance |
Timeline |
Shanghai OPM Biosciences |
Lepu Medical Tech |
Shanghai OPM and Lepu Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shanghai OPM and Lepu Medical
The main advantage of trading using opposite Shanghai OPM and Lepu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai OPM position performs unexpectedly, Lepu 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 Lepu Medical will offset losses from the drop in Lepu Medical's long position.Shanghai OPM vs. Industrial and Commercial | Shanghai OPM vs. China Construction Bank | Shanghai OPM vs. Bank of China | Shanghai OPM vs. Agricultural Bank of |
Lepu Medical vs. Industrial and Commercial | Lepu Medical vs. Kweichow Moutai Co | Lepu Medical vs. Agricultural Bank of | Lepu Medical vs. China Mobile Limited |
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.
Other Complementary Tools
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Stocks Directory Find actively traded stocks across global markets | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |