Correlation Between Shanghai Action and Shanghai OPM
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By analyzing existing cross correlation between Shanghai Action Education and Shanghai OPM Biosciences, you can compare the effects of market volatilities on Shanghai Action and Shanghai OPM 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 Action with a short position of Shanghai OPM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Action and Shanghai OPM.
Diversification Opportunities for Shanghai Action and Shanghai OPM
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shanghai and Shanghai is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Action Education and Shanghai OPM Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai OPM Biosciences and Shanghai Action 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 Action Education are associated (or correlated) with Shanghai OPM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai OPM Biosciences has no effect on the direction of Shanghai Action i.e., Shanghai Action and Shanghai OPM go up and down completely randomly.
Pair Corralation between Shanghai Action and Shanghai OPM
Assuming the 90 days trading horizon Shanghai Action Education is expected to generate 1.23 times more return on investment than Shanghai OPM. However, Shanghai Action is 1.23 times more volatile than Shanghai OPM Biosciences. It trades about 0.08 of its potential returns per unit of risk. Shanghai OPM Biosciences is currently generating about -0.16 per unit of risk. If you would invest 3,246 in Shanghai Action Education on September 25, 2024 and sell it today you would earn a total of 137.00 from holding Shanghai Action Education or generate 4.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
Shanghai Action Education vs. Shanghai OPM Biosciences
Performance |
Timeline |
Shanghai Action Education |
Shanghai OPM Biosciences |
Shanghai Action and Shanghai OPM Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shanghai Action and Shanghai OPM
The main advantage of trading using opposite Shanghai Action and Shanghai OPM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Action position performs unexpectedly, Shanghai OPM 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 OPM will offset losses from the drop in Shanghai OPM's long position.Shanghai Action vs. PetroChina Co Ltd | Shanghai Action vs. China Mobile Limited | Shanghai Action vs. CNOOC Limited | Shanghai Action vs. Ping An Insurance |
Shanghai OPM vs. Heilongjiang Publishing Media | Shanghai OPM vs. Youyou Foods Co | Shanghai OPM vs. Eastroc Beverage Group | Shanghai OPM vs. Shanghai Action Education |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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