Correlation Between Shanghai Ziyan and Zhongshan Public
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By analyzing existing cross correlation between Shanghai Ziyan Foods and Zhongshan Public Utilities, you can compare the effects of market volatilities on Shanghai Ziyan and Zhongshan Public 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 Ziyan with a short position of Zhongshan Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Ziyan and Zhongshan Public.
Diversification Opportunities for Shanghai Ziyan and Zhongshan Public
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Zhongshan is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Ziyan Foods and Zhongshan Public Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongshan Public Uti and Shanghai Ziyan 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 Ziyan Foods are associated (or correlated) with Zhongshan Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongshan Public Uti has no effect on the direction of Shanghai Ziyan i.e., Shanghai Ziyan and Zhongshan Public go up and down completely randomly.
Pair Corralation between Shanghai Ziyan and Zhongshan Public
Assuming the 90 days trading horizon Shanghai Ziyan Foods is expected to generate 2.59 times more return on investment than Zhongshan Public. However, Shanghai Ziyan is 2.59 times more volatile than Zhongshan Public Utilities. It trades about 0.02 of its potential returns per unit of risk. Zhongshan Public Utilities is currently generating about 0.02 per unit of risk. If you would invest 1,761 in Shanghai Ziyan Foods on October 16, 2024 and sell it today you would earn a total of 2.00 from holding Shanghai Ziyan Foods or generate 0.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Ziyan Foods vs. Zhongshan Public Utilities
Performance |
| Timeline |
| Shanghai Ziyan Foods |
| Zhongshan Public Uti |
Shanghai Ziyan and Zhongshan Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Ziyan and Zhongshan Public
The main advantage of trading using opposite Shanghai Ziyan and Zhongshan Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Ziyan position performs unexpectedly, Zhongshan Public 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 Zhongshan Public will offset losses from the drop in Zhongshan Public's long position.| Shanghai Ziyan vs. Nanjing Putian Telecommunications | Shanghai Ziyan vs. Songz Automobile Air | Shanghai Ziyan vs. Fiberhome Telecommunication Technologies | Shanghai Ziyan vs. Dymatic Chemicals |
| Zhongshan Public vs. Yankershop Food Co | Zhongshan Public vs. Juneyao Airlines | Zhongshan Public vs. Thinkon Semiconductor Jinzhou | Zhongshan Public vs. Shanghai Ziyan Foods |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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