Correlation Between Zhongfu Information and Shanghai Ziyan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhongfu Information and Shanghai Ziyan Foods, you can compare the effects of market volatilities on Zhongfu 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 Zhongfu Information with a short position of Shanghai Ziyan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongfu Information and Shanghai Ziyan.
Diversification Opportunities for Zhongfu Information and Shanghai Ziyan
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zhongfu and Shanghai is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Zhongfu Information 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 Zhongfu 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 Zhongfu Information 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 Zhongfu Information i.e., Zhongfu Information and Shanghai Ziyan go up and down completely randomly.
Pair Corralation between Zhongfu Information and Shanghai Ziyan
Assuming the 90 days trading horizon Zhongfu Information is expected to generate 1.47 times more return on investment than Shanghai Ziyan. However, Zhongfu Information is 1.47 times more volatile than Shanghai Ziyan Foods. It trades about 0.07 of its potential returns per unit of risk. Shanghai Ziyan Foods is currently generating about 0.08 per unit of risk. If you would invest 1,248 in Zhongfu Information on October 18, 2024 and sell it today you would earn a total of 384.00 from holding Zhongfu Information or generate 30.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongfu Information vs. Shanghai Ziyan Foods
Performance |
| Timeline |
| Zhongfu Information |
| Shanghai Ziyan Foods |
Zhongfu Information and Shanghai Ziyan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongfu Information and Shanghai Ziyan
The main advantage of trading using opposite Zhongfu Information and Shanghai Ziyan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongfu 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.| Zhongfu Information vs. Everjoy Health Group | Zhongfu Information vs. Mingchen Health Co | Zhongfu Information vs. De Rucci Healthy | Zhongfu Information vs. Dezhan HealthCare Co |
| Shanghai Ziyan vs. Beijing Watertek Information | Shanghai Ziyan vs. StarPower Semiconductor | Shanghai Ziyan vs. Zhongfu Information | Shanghai Ziyan vs. Qiming Information 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| CEOs Directory Screen CEOs from public companies around the world |