Correlation Between Vats Liquor and Shanghai Shuixing
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By analyzing existing cross correlation between Vats Liquor Chain and Shanghai Shuixing Home, you can compare the effects of market volatilities on Vats Liquor and Shanghai Shuixing 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 Vats Liquor with a short position of Shanghai Shuixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vats Liquor and Shanghai Shuixing.
Diversification Opportunities for Vats Liquor and Shanghai Shuixing
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vats and Shanghai is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Vats Liquor Chain and Shanghai Shuixing Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shuixing Home and Vats Liquor 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 Vats Liquor Chain are associated (or correlated) with Shanghai Shuixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shuixing Home has no effect on the direction of Vats Liquor i.e., Vats Liquor and Shanghai Shuixing go up and down completely randomly.
Pair Corralation between Vats Liquor and Shanghai Shuixing
Assuming the 90 days trading horizon Vats Liquor Chain is expected to generate 1.22 times more return on investment than Shanghai Shuixing. However, Vats Liquor is 1.22 times more volatile than Shanghai Shuixing Home. It trades about 0.06 of its potential returns per unit of risk. Shanghai Shuixing Home is currently generating about -0.2 per unit of risk. If you would invest 1,758 in Vats Liquor Chain on October 25, 2024 and sell it today you would earn a total of 62.00 from holding Vats Liquor Chain or generate 3.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vats Liquor Chain vs. Shanghai Shuixing Home
Performance |
| Timeline |
| Vats Liquor Chain |
| Shanghai Shuixing Home |
Vats Liquor and Shanghai Shuixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vats Liquor and Shanghai Shuixing
The main advantage of trading using opposite Vats Liquor and Shanghai Shuixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vats Liquor position performs unexpectedly, Shanghai Shuixing 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 Shuixing will offset losses from the drop in Shanghai Shuixing's long position.| Vats Liquor vs. Fujian Anjoy Foods | Vats Liquor vs. Xiamen Jihong Package | Vats Liquor vs. Highbroad Advanced Material | Vats Liquor vs. Youyou Foods Co |
| Shanghai Shuixing vs. PetroChina Co Ltd | Shanghai Shuixing vs. Gansu Jiu Steel | Shanghai Shuixing vs. Ming Yang Smart | Shanghai Shuixing vs. Aba Chemicals Corp |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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