Correlation Between 159681 and Shanghai Ziyan
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By analyzing existing cross correlation between 159681 and Shanghai Ziyan Foods, you can compare the effects of market volatilities on 159681 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 159681 with a short position of Shanghai Ziyan. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and Shanghai Ziyan.
Diversification Opportunities for 159681 and Shanghai Ziyan
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between 159681 and Shanghai is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding 159681 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 159681 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 159681 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 159681 i.e., 159681 and Shanghai Ziyan go up and down completely randomly.
Pair Corralation between 159681 and Shanghai Ziyan
Assuming the 90 days trading horizon 159681 is expected to generate 1.12 times more return on investment than Shanghai Ziyan. However, 159681 is 1.12 times more volatile than Shanghai Ziyan Foods. It trades about 0.05 of its potential returns per unit of risk. Shanghai Ziyan Foods is currently generating about 0.0 per unit of risk. If you would invest 72.00 in 159681 on November 5, 2024 and sell it today you would earn a total of 19.00 from holding 159681 or generate 26.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
159681 vs. Shanghai Ziyan Foods
Performance |
| Timeline |
| 159681 |
| Shanghai Ziyan Foods |
159681 and Shanghai Ziyan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159681 and Shanghai Ziyan
The main advantage of trading using opposite 159681 and Shanghai Ziyan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 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.The idea behind 159681 and Shanghai Ziyan Foods pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Shanghai Ziyan vs. Ningbo Fangzheng Automobile | Shanghai Ziyan vs. Changchun Engley Automobile | Shanghai Ziyan vs. China National Software | Shanghai Ziyan vs. Linewell Software Co |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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