Correlation Between Shanghai Jinfeng and Industrial
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By analyzing existing cross correlation between Shanghai Jinfeng Wine and Industrial and Commercial, you can compare the effects of market volatilities on Shanghai Jinfeng and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Jinfeng and Industrial.
Diversification Opportunities for Shanghai Jinfeng and Industrial
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shanghai and Industrial is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Jinfeng Wine and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Shanghai Jinfeng i.e., Shanghai Jinfeng and Industrial go up and down completely randomly.
Pair Corralation between Shanghai Jinfeng and Industrial
Assuming the 90 days trading horizon Shanghai Jinfeng Wine is expected to generate 3.11 times more return on investment than Industrial. However, Shanghai Jinfeng is 3.11 times more volatile than Industrial and Commercial. It trades about 0.21 of its potential returns per unit of risk. Industrial and Commercial is currently generating about 0.0 per unit of risk. If you would invest 538.00 in Shanghai Jinfeng Wine on September 4, 2024 and sell it today you would earn a total of 67.00 from holding Shanghai Jinfeng Wine or generate 12.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Jinfeng Wine vs. Industrial and Commercial
Performance |
| Timeline |
| Shanghai Jinfeng Wine |
| Industrial and Commercial |
Shanghai Jinfeng and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Jinfeng and Industrial
The main advantage of trading using opposite Shanghai Jinfeng and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Jinfeng position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.| Shanghai Jinfeng vs. Industrial and Commercial | Shanghai Jinfeng vs. Agricultural Bank of | Shanghai Jinfeng vs. China Construction Bank | Shanghai Jinfeng vs. Bank of China |
| Industrial vs. China Life Insurance | Industrial vs. Shenzhen MYS Environmental | Industrial vs. Anhui Fuhuang Steel | Industrial vs. China Sports Industry |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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