Correlation Between Sharetronic Data and Shanghai Ziyan
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By analyzing existing cross correlation between Sharetronic Data Technology and Shanghai Ziyan Foods, you can compare the effects of market volatilities on Sharetronic Data 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 Sharetronic Data with a short position of Shanghai Ziyan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sharetronic Data and Shanghai Ziyan.
Diversification Opportunities for Sharetronic Data and Shanghai Ziyan
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sharetronic and Shanghai is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Sharetronic Data Technology 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 Sharetronic Data 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 Sharetronic Data Technology 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 Sharetronic Data i.e., Sharetronic Data and Shanghai Ziyan go up and down completely randomly.
Pair Corralation between Sharetronic Data and Shanghai Ziyan
Assuming the 90 days trading horizon Sharetronic Data Technology is expected to generate 1.9 times more return on investment than Shanghai Ziyan. However, Sharetronic Data is 1.9 times more volatile than Shanghai Ziyan Foods. It trades about 0.11 of its potential returns per unit of risk. Shanghai Ziyan Foods is currently generating about -0.03 per unit of risk. If you would invest 1,726 in Sharetronic Data Technology on September 15, 2024 and sell it today you would earn a total of 8,590 from holding Sharetronic Data Technology or generate 497.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sharetronic Data Technology vs. Shanghai Ziyan Foods
Performance |
| Timeline |
| Sharetronic Data Tec |
| Shanghai Ziyan Foods |
Sharetronic Data and Shanghai Ziyan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sharetronic Data and Shanghai Ziyan
The main advantage of trading using opposite Sharetronic Data and Shanghai Ziyan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sharetronic Data 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.| Sharetronic Data vs. Shanghai Ziyan Foods | Sharetronic Data vs. Jiangsu Yueda Investment | Sharetronic Data vs. Changchun Faway Automobile | Sharetronic Data vs. China Life Insurance |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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