Correlation Between Shanghai OPM and Yunnan Chihong
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By analyzing existing cross correlation between Shanghai OPM Biosciences and Yunnan Chihong ZincGermanium, you can compare the effects of market volatilities on Shanghai OPM and Yunnan Chihong 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 Yunnan Chihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai OPM and Yunnan Chihong.
Diversification Opportunities for Shanghai OPM and Yunnan Chihong
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Yunnan is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai OPM Biosciences and Yunnan Chihong ZincGermanium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Chihong ZincG 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 Yunnan Chihong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Chihong ZincG has no effect on the direction of Shanghai OPM i.e., Shanghai OPM and Yunnan Chihong go up and down completely randomly.
Pair Corralation between Shanghai OPM and Yunnan Chihong
Assuming the 90 days trading horizon Shanghai OPM Biosciences is expected to under-perform the Yunnan Chihong. In addition to that, Shanghai OPM is 1.86 times more volatile than Yunnan Chihong ZincGermanium. It trades about -0.16 of its total potential returns per unit of risk. Yunnan Chihong ZincGermanium is currently generating about -0.01 per unit of volatility. If you would invest 571.00 in Yunnan Chihong ZincGermanium on September 25, 2024 and sell it today you would lose (3.00) from holding Yunnan Chihong ZincGermanium or give up 0.53% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Shanghai OPM Biosciences vs. Yunnan Chihong ZincGermanium
Performance |
Timeline |
Shanghai OPM Biosciences |
Yunnan Chihong ZincG |
Shanghai OPM and Yunnan Chihong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shanghai OPM and Yunnan Chihong
The main advantage of trading using opposite Shanghai OPM and Yunnan Chihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai OPM position performs unexpectedly, Yunnan Chihong 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 Yunnan Chihong will offset losses from the drop in Yunnan Chihong's long position.Shanghai OPM vs. Heilongjiang Publishing Media | Shanghai OPM vs. Youyou Foods Co | Shanghai OPM vs. Eastroc Beverage Group | Shanghai OPM vs. Shanghai Action Education |
Yunnan Chihong vs. Zijin Mining Group | Yunnan Chihong vs. Wanhua Chemical Group | Yunnan Chihong vs. Baoshan Iron Steel | Yunnan Chihong vs. Shandong Gold Mining |
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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