Correlation Between Shandong Meichen and Thunder Software
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By analyzing existing cross correlation between Shandong Meichen Science and Thunder Software Technology, you can compare the effects of market volatilities on Shandong Meichen and Thunder Software 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 Shandong Meichen with a short position of Thunder Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Meichen and Thunder Software.
Diversification Opportunities for Shandong Meichen and Thunder Software
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Thunder is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Meichen Science and Thunder Software Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thunder Software Tec and Shandong Meichen 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 Shandong Meichen Science are associated (or correlated) with Thunder Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thunder Software Tec has no effect on the direction of Shandong Meichen i.e., Shandong Meichen and Thunder Software go up and down completely randomly.
Pair Corralation between Shandong Meichen and Thunder Software
Assuming the 90 days trading horizon Shandong Meichen Science is expected to generate 2.2 times more return on investment than Thunder Software. However, Shandong Meichen is 2.2 times more volatile than Thunder Software Technology. It trades about 0.08 of its potential returns per unit of risk. Thunder Software Technology is currently generating about 0.1 per unit of risk. If you would invest 204.00 in Shandong Meichen Science on August 3, 2025 and sell it today you would earn a total of 40.00 from holding Shandong Meichen Science or generate 19.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Meichen Science vs. Thunder Software Technology
Performance |
| Timeline |
| Shandong Meichen Science |
| Thunder Software Tec |
Shandong Meichen and Thunder Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Meichen and Thunder Software
The main advantage of trading using opposite Shandong Meichen and Thunder Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Meichen position performs unexpectedly, Thunder Software 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 Thunder Software will offset losses from the drop in Thunder Software's long position.| Shandong Meichen vs. Zhengzhou Qianweiyangchu Food | Shandong Meichen vs. ShenZhen GAD Environmental | Shandong Meichen vs. Anji Foodstuff Co | Shandong Meichen vs. Tus Sound Environmental Resources |
| Thunder Software vs. Kweichow Moutai Co | Thunder Software vs. Zhejiang Zhaofeng Mechanical | Thunder Software vs. Wuliangye Yibin Co | Thunder Software vs. Anhui Gujing Distillery |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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