Correlation Between Beijing Lanxum and Shanghai Ziyan
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By analyzing existing cross correlation between Beijing Lanxum Tech and Shanghai Ziyan Foods, you can compare the effects of market volatilities on Beijing Lanxum 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 Beijing Lanxum with a short position of Shanghai Ziyan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Lanxum and Shanghai Ziyan.
Diversification Opportunities for Beijing Lanxum and Shanghai Ziyan
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Shanghai is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Lanxum Tech 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 Beijing Lanxum 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 Beijing Lanxum Tech 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 Beijing Lanxum i.e., Beijing Lanxum and Shanghai Ziyan go up and down completely randomly.
Pair Corralation between Beijing Lanxum and Shanghai Ziyan
Assuming the 90 days trading horizon Beijing Lanxum Tech is expected to under-perform the Shanghai Ziyan. In addition to that, Beijing Lanxum is 2.49 times more volatile than Shanghai Ziyan Foods. It trades about 0.0 of its total potential returns per unit of risk. Shanghai Ziyan Foods is currently generating about 0.19 per unit of volatility. If you would invest 1,758 in Shanghai Ziyan Foods on September 14, 2024 and sell it today you would earn a total of 208.00 from holding Shanghai Ziyan Foods or generate 11.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Beijing Lanxum Tech vs. Shanghai Ziyan Foods
Performance |
| Timeline |
| Beijing Lanxum Tech |
| Shanghai Ziyan Foods |
Beijing Lanxum and Shanghai Ziyan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Lanxum and Shanghai Ziyan
The main advantage of trading using opposite Beijing Lanxum and Shanghai Ziyan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Lanxum 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.| Beijing Lanxum vs. Shenzhen Silver Basis | Beijing Lanxum vs. Xizi Clean Energy | Beijing Lanxum vs. Tibet Huayu Mining | Beijing Lanxum vs. Guangdong Liantai Environmental |
| Shanghai Ziyan vs. Kweichow Moutai Co | Shanghai Ziyan vs. Shenzhen Mindray Bio Medical | Shanghai Ziyan vs. Jiangsu Pacific Quartz | Shanghai Ziyan vs. G bits Network Technology |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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