Correlation Between Shantou Wanshun and Shanghai Jinfeng
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By analyzing existing cross correlation between Shantou Wanshun Package and Shanghai Jinfeng Wine, you can compare the effects of market volatilities on Shantou Wanshun and Shanghai Jinfeng 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 Shantou Wanshun with a short position of Shanghai Jinfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantou Wanshun and Shanghai Jinfeng.
Diversification Opportunities for Shantou Wanshun and Shanghai Jinfeng
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shantou and Shanghai is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Shantou Wanshun Package and Shanghai Jinfeng Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jinfeng Wine and Shantou Wanshun 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 Shantou Wanshun Package are associated (or correlated) with Shanghai Jinfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jinfeng Wine has no effect on the direction of Shantou Wanshun i.e., Shantou Wanshun and Shanghai Jinfeng go up and down completely randomly.
Pair Corralation between Shantou Wanshun and Shanghai Jinfeng
Assuming the 90 days trading horizon Shantou Wanshun Package is expected to generate 1.32 times more return on investment than Shanghai Jinfeng. However, Shantou Wanshun is 1.32 times more volatile than Shanghai Jinfeng Wine. It trades about 0.01 of its potential returns per unit of risk. Shanghai Jinfeng Wine is currently generating about 0.0 per unit of risk. If you would invest 471.00 in Shantou Wanshun Package on October 12, 2024 and sell it today you would lose (10.00) from holding Shantou Wanshun Package or give up 2.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shantou Wanshun Package vs. Shanghai Jinfeng Wine
Performance |
| Timeline |
| Shantou Wanshun Package |
| Shanghai Jinfeng Wine |
Shantou Wanshun and Shanghai Jinfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shantou Wanshun and Shanghai Jinfeng
The main advantage of trading using opposite Shantou Wanshun and Shanghai Jinfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantou Wanshun position performs unexpectedly, Shanghai Jinfeng 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 Jinfeng will offset losses from the drop in Shanghai Jinfeng's long position.| Shantou Wanshun vs. Guangdong Wens Foodstuff | Shantou Wanshun vs. New Hope Dairy | Shantou Wanshun vs. Anji Foodstuff Co | Shantou Wanshun vs. Beijing Sanyuan Foods |
| Shanghai Jinfeng vs. Shantou Wanshun Package | Shanghai Jinfeng vs. Qingdao Foods Co | Shanghai Jinfeng vs. Olympic Circuit Technology | Shanghai Jinfeng vs. Changchun UP Optotech |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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