Correlation Between Cinda Securities and Shanghai Jinfeng
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By analyzing existing cross correlation between Cinda Securities Co and Shanghai Jinfeng Wine, you can compare the effects of market volatilities on Cinda Securities and Shanghai Jinfeng 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 Cinda Securities with a short position of Shanghai Jinfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and Shanghai Jinfeng.
Diversification Opportunities for Cinda Securities and Shanghai Jinfeng
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cinda and Shanghai is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co and Shanghai Jinfeng Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jinfeng Wine and Cinda Securities 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 Cinda Securities Co are associated (or correlated) with Shanghai Jinfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jinfeng Wine has no effect on the direction of Cinda Securities i.e., Cinda Securities and Shanghai Jinfeng go up and down completely randomly.
Pair Corralation between Cinda Securities and Shanghai Jinfeng
Assuming the 90 days trading horizon Cinda Securities Co is expected to under-perform the Shanghai Jinfeng. But the stock apears to be less risky and, when comparing its historical volatility, Cinda Securities Co is 1.73 times less risky than Shanghai Jinfeng. The stock trades about -0.04 of its potential returns per unit of risk. The Shanghai Jinfeng Wine is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 577.00 in Shanghai Jinfeng Wine on September 14, 2024 and sell it today you would earn a total of 150.00 from holding Shanghai Jinfeng Wine or generate 26.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinda Securities Co vs. Shanghai Jinfeng Wine
Performance |
| Timeline |
| Cinda Securities |
| Shanghai Jinfeng Wine |
Cinda Securities and Shanghai Jinfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and Shanghai Jinfeng
The main advantage of trading using opposite Cinda Securities and Shanghai Jinfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities position performs unexpectedly, Shanghai Jinfeng 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 Jinfeng will offset losses from the drop in Shanghai Jinfeng's long position.| Cinda Securities vs. Chison Medical Technologies | Cinda Securities vs. Eastern Air Logistics | Cinda Securities vs. Hangzhou Gisway Information | Cinda Securities vs. Air China Ltd |
| Shanghai Jinfeng vs. China Life Insurance | Shanghai Jinfeng vs. Cinda Securities Co | Shanghai Jinfeng vs. Piotech Inc A | Shanghai Jinfeng vs. Dongxing Sec 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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