Correlation Between Qiming Information and Shanghai Ziyan
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By analyzing existing cross correlation between Qiming Information Technology and Shanghai Ziyan Foods, you can compare the effects of market volatilities on Qiming Information and Shanghai Ziyan 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 Qiming Information with a short position of Shanghai Ziyan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qiming Information and Shanghai Ziyan.
Diversification Opportunities for Qiming Information and Shanghai Ziyan
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Qiming and Shanghai is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Qiming Information Technology and Shanghai Ziyan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Ziyan Foods and Qiming Information 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 Qiming Information Technology are associated (or correlated) with Shanghai Ziyan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Ziyan Foods has no effect on the direction of Qiming Information i.e., Qiming Information and Shanghai Ziyan go up and down completely randomly.
Pair Corralation between Qiming Information and Shanghai Ziyan
Assuming the 90 days trading horizon Qiming Information Technology is expected to under-perform the Shanghai Ziyan. But the stock apears to be less risky and, when comparing its historical volatility, Qiming Information Technology is 1.26 times less risky than Shanghai Ziyan. The stock trades about -0.21 of its potential returns per unit of risk. The Shanghai Ziyan Foods is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 1,893 in Shanghai Ziyan Foods on October 16, 2024 and sell it today you would lose (179.00) from holding Shanghai Ziyan Foods or give up 9.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qiming Information Technology vs. Shanghai Ziyan Foods
Performance |
| Timeline |
| Qiming Information |
| Shanghai Ziyan Foods |
Qiming Information and Shanghai Ziyan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qiming Information and Shanghai Ziyan
The main advantage of trading using opposite Qiming Information and Shanghai Ziyan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qiming Information position performs unexpectedly, Shanghai Ziyan 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 Ziyan will offset losses from the drop in Shanghai Ziyan's long position.| Qiming Information vs. Bank of Communications | Qiming Information vs. China Satellite Communications | Qiming Information vs. Beijing Bewinner Communications | Qiming Information vs. Wintao Communications Co |
| Shanghai Ziyan vs. Nanjing Putian Telecommunications | Shanghai Ziyan vs. Songz Automobile Air | Shanghai Ziyan vs. Fiberhome Telecommunication Technologies | Shanghai Ziyan vs. Dymatic Chemicals |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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