Correlation Between Shanghai Jinfeng and Piotech
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By analyzing existing cross correlation between Shanghai Jinfeng Wine and Piotech Inc A, you can compare the effects of market volatilities on Shanghai Jinfeng and Piotech 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 Piotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Jinfeng and Piotech.
Diversification Opportunities for Shanghai Jinfeng and Piotech
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Piotech is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Jinfeng Wine and Piotech Inc A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Piotech Inc A 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 Piotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Piotech Inc A has no effect on the direction of Shanghai Jinfeng i.e., Shanghai Jinfeng and Piotech go up and down completely randomly.
Pair Corralation between Shanghai Jinfeng and Piotech
Assuming the 90 days trading horizon Shanghai Jinfeng is expected to generate 3.29 times less return on investment than Piotech. But when comparing it to its historical volatility, Shanghai Jinfeng Wine is 1.71 times less risky than Piotech. It trades about 0.05 of its potential returns per unit of risk. Piotech Inc A is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 12,989 in Piotech Inc A on September 1, 2024 and sell it today you would earn a total of 6,942 from holding Piotech Inc A or generate 53.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.19% |
| Values | Daily Returns |
Shanghai Jinfeng Wine vs. Piotech Inc A
Performance |
| Timeline |
| Shanghai Jinfeng Wine |
| Piotech Inc A |
Shanghai Jinfeng and Piotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Jinfeng and Piotech
The main advantage of trading using opposite Shanghai Jinfeng and Piotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Jinfeng position performs unexpectedly, Piotech 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 Piotech will offset losses from the drop in Piotech's long position.| Shanghai Jinfeng vs. Dongfeng Automobile Co | Shanghai Jinfeng vs. Tongling Nonferrous Metals | Shanghai Jinfeng vs. Ye Chiu Metal | Shanghai Jinfeng vs. Allwin Telecommunication Co |
| Piotech vs. Shandong Homey Aquatic | Piotech vs. Keda Clean Energy | Piotech vs. Nanjing OLO Home | Piotech vs. Xilinmen Furniture Co |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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