Correlation Between Shanghai Jinfeng and Heilongjiang Agriculture
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By analyzing existing cross correlation between Shanghai Jinfeng Wine and Heilongjiang Agriculture Co, you can compare the effects of market volatilities on Shanghai Jinfeng and Heilongjiang Agriculture 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 Shanghai Jinfeng with a short position of Heilongjiang Agriculture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Jinfeng and Heilongjiang Agriculture.
Diversification Opportunities for Shanghai Jinfeng and Heilongjiang Agriculture
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shanghai and Heilongjiang is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Jinfeng Wine and Heilongjiang Agriculture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Agriculture and Shanghai Jinfeng 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 Shanghai Jinfeng Wine are associated (or correlated) with Heilongjiang Agriculture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Agriculture has no effect on the direction of Shanghai Jinfeng i.e., Shanghai Jinfeng and Heilongjiang Agriculture go up and down completely randomly.
Pair Corralation between Shanghai Jinfeng and Heilongjiang Agriculture
Assuming the 90 days trading horizon Shanghai Jinfeng Wine is expected to under-perform the Heilongjiang Agriculture. In addition to that, Shanghai Jinfeng is 2.03 times more volatile than Heilongjiang Agriculture Co. It trades about -0.21 of its total potential returns per unit of risk. Heilongjiang Agriculture Co is currently generating about -0.1 per unit of volatility. If you would invest 1,437 in Heilongjiang Agriculture Co on October 20, 2024 and sell it today you would lose (57.00) from holding Heilongjiang Agriculture Co or give up 3.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Jinfeng Wine vs. Heilongjiang Agriculture Co
Performance |
| Timeline |
| Shanghai Jinfeng Wine |
| Heilongjiang Agriculture |
Shanghai Jinfeng and Heilongjiang Agriculture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Jinfeng and Heilongjiang Agriculture
The main advantage of trading using opposite Shanghai Jinfeng and Heilongjiang Agriculture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Jinfeng position performs unexpectedly, Heilongjiang Agriculture 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 Heilongjiang Agriculture will offset losses from the drop in Heilongjiang Agriculture's long position.| Shanghai Jinfeng vs. Jointo Energy Investment | Shanghai Jinfeng vs. Zhongrun Resources Investment | Shanghai Jinfeng vs. Guangdong Jingyi Metal | Shanghai Jinfeng vs. Vanfund Urban Investment |
| Heilongjiang Agriculture vs. V V Food | Heilongjiang Agriculture vs. HaiXin Foods Co | Heilongjiang Agriculture vs. Olympic Circuit Technology | Heilongjiang Agriculture vs. Namchow Food Group |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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