Correlation Between Epoxy Base and Shanghai Ziyan
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By analyzing existing cross correlation between Epoxy Base Electronic and Shanghai Ziyan Foods, you can compare the effects of market volatilities on Epoxy Base 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 Epoxy Base with a short position of Shanghai Ziyan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Epoxy Base and Shanghai Ziyan.
Diversification Opportunities for Epoxy Base and Shanghai Ziyan
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Epoxy and Shanghai is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Epoxy Base Electronic 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 Epoxy Base 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 Epoxy Base Electronic 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 Epoxy Base i.e., Epoxy Base and Shanghai Ziyan go up and down completely randomly.
Pair Corralation between Epoxy Base and Shanghai Ziyan
Assuming the 90 days trading horizon Epoxy Base Electronic is expected to generate 1.29 times more return on investment than Shanghai Ziyan. However, Epoxy Base is 1.29 times more volatile than Shanghai Ziyan Foods. It trades about 0.15 of its potential returns per unit of risk. Shanghai Ziyan Foods is currently generating about 0.11 per unit of risk. If you would invest 427.00 in Epoxy Base Electronic on August 31, 2024 and sell it today you would earn a total of 143.00 from holding Epoxy Base Electronic or generate 33.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Epoxy Base Electronic vs. Shanghai Ziyan Foods
Performance |
| Timeline |
| Epoxy Base Electronic |
| Shanghai Ziyan Foods |
Epoxy Base and Shanghai Ziyan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Epoxy Base and Shanghai Ziyan
The main advantage of trading using opposite Epoxy Base and Shanghai Ziyan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Epoxy Base 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.| Epoxy Base vs. Zijin Mining Group | Epoxy Base vs. Wanhua Chemical Group | Epoxy Base vs. Baoshan Iron Steel | Epoxy Base vs. Rongsheng Petrochemical Co |
| Shanghai Ziyan vs. China State Construction | Shanghai Ziyan vs. China Merchants Shekou | Shanghai Ziyan vs. Huafa Industrial Co | Shanghai Ziyan vs. China International Capital |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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