Correlation Between Sublime China and Shanghai Ziyan
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By analyzing existing cross correlation between Sublime China Information and Shanghai Ziyan Foods, you can compare the effects of market volatilities on Sublime China 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 Sublime China with a short position of Shanghai Ziyan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sublime China and Shanghai Ziyan.
Diversification Opportunities for Sublime China and Shanghai Ziyan
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sublime and Shanghai is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Sublime China 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 Sublime China 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 Sublime China 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 Sublime China i.e., Sublime China and Shanghai Ziyan go up and down completely randomly.
Pair Corralation between Sublime China and Shanghai Ziyan
Assuming the 90 days trading horizon Sublime China Information is expected to generate 1.89 times more return on investment than Shanghai Ziyan. However, Sublime China is 1.89 times more volatile than Shanghai Ziyan Foods. It trades about 0.04 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 4,813 in Sublime China Information on October 16, 2024 and sell it today you would earn a total of 1,603 from holding Sublime China Information or generate 33.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sublime China Information vs. Shanghai Ziyan Foods
Performance |
| Timeline |
| Sublime China Information |
| Shanghai Ziyan Foods |
Sublime China and Shanghai Ziyan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sublime China and Shanghai Ziyan
The main advantage of trading using opposite Sublime China and Shanghai Ziyan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sublime China 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.| Sublime China vs. Guangxi Wuzhou Communications | Sublime China vs. Hubeiyichang Transportation Group | Sublime China vs. Wuhan Yangtze Communication | Sublime China vs. Lander Sports Development |
| Shanghai Ziyan vs. Nanjing Putian Telecommunications | Shanghai Ziyan vs. Songz Automobile Air | Shanghai Ziyan vs. Fiberhome Telecommunication Technologies | Shanghai Ziyan vs. Dymatic Chemicals |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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