Correlation Between ACM Research and Shandong Ruifeng
Specify exactly 2 symbols:
By analyzing existing cross correlation between ACM Research Shanghai and Shandong Ruifeng Chemical, you can compare the effects of market volatilities on ACM Research and Shandong Ruifeng 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 ACM Research with a short position of Shandong Ruifeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACM Research and Shandong Ruifeng.
Diversification Opportunities for ACM Research and Shandong Ruifeng
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ACM and Shandong is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding ACM Research Shanghai and Shandong Ruifeng Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Ruifeng Chemical and ACM Research 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 ACM Research Shanghai are associated (or correlated) with Shandong Ruifeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Ruifeng Chemical has no effect on the direction of ACM Research i.e., ACM Research and Shandong Ruifeng go up and down completely randomly.
Pair Corralation between ACM Research and Shandong Ruifeng
Assuming the 90 days trading horizon ACM Research is expected to generate 1.11 times less return on investment than Shandong Ruifeng. But when comparing it to its historical volatility, ACM Research Shanghai is 1.11 times less risky than Shandong Ruifeng. It trades about 0.03 of its potential returns per unit of risk. Shandong Ruifeng Chemical is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 786.00 in Shandong Ruifeng Chemical on September 23, 2024 and sell it today you would earn a total of 254.00 from holding Shandong Ruifeng Chemical or generate 32.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
ACM Research Shanghai vs. Shandong Ruifeng Chemical
Performance |
Timeline |
ACM Research Shanghai |
Shandong Ruifeng Chemical |
ACM Research and Shandong Ruifeng Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ACM Research and Shandong Ruifeng
The main advantage of trading using opposite ACM Research and Shandong Ruifeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACM Research position performs unexpectedly, Shandong Ruifeng 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 Shandong Ruifeng will offset losses from the drop in Shandong Ruifeng's long position.ACM Research vs. Ming Yang Smart | ACM Research vs. 159681 | ACM Research vs. 159005 | ACM Research vs. Loctek Ergonomic Technology |
Shandong Ruifeng vs. Zijin Mining Group | Shandong Ruifeng vs. Wanhua Chemical Group | Shandong Ruifeng vs. Baoshan Iron Steel | Shandong Ruifeng 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
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 | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |