Correlation Between Shanghai Ziyan and Jiangnan Mould
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By analyzing existing cross correlation between Shanghai Ziyan Foods and Jiangnan Mould Plastic, you can compare the effects of market volatilities on Shanghai Ziyan and Jiangnan Mould 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 Jiangnan Mould. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Ziyan and Jiangnan Mould.
Diversification Opportunities for Shanghai Ziyan and Jiangnan Mould
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shanghai and Jiangnan is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Ziyan Foods and Jiangnan Mould Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangnan Mould Plastic 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 Jiangnan Mould. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangnan Mould Plastic has no effect on the direction of Shanghai Ziyan i.e., Shanghai Ziyan and Jiangnan Mould go up and down completely randomly.
Pair Corralation between Shanghai Ziyan and Jiangnan Mould
Assuming the 90 days trading horizon Shanghai Ziyan Foods is expected to under-perform the Jiangnan Mould. In addition to that, Shanghai Ziyan is 1.8 times more volatile than Jiangnan Mould Plastic. It trades about -0.31 of its total potential returns per unit of risk. Jiangnan Mould Plastic is currently generating about 0.08 per unit of volatility. If you would invest 675.00 in Jiangnan Mould Plastic on November 3, 2024 and sell it today you would earn a total of 16.00 from holding Jiangnan Mould Plastic or generate 2.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Ziyan Foods vs. Jiangnan Mould Plastic
Performance |
| Timeline |
| Shanghai Ziyan Foods |
| Jiangnan Mould Plastic |
Shanghai Ziyan and Jiangnan Mould Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Ziyan and Jiangnan Mould
The main advantage of trading using opposite Shanghai Ziyan and Jiangnan Mould positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Ziyan position performs unexpectedly, Jiangnan Mould 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 Jiangnan Mould will offset losses from the drop in Jiangnan Mould's long position.| Shanghai Ziyan vs. Chengdu Kanghua Biological | Shanghai Ziyan vs. Beijing Wantai Biological | Shanghai Ziyan vs. Suzhou Novoprotein Scientific | Shanghai Ziyan vs. Aluminum Corp of |
| Jiangnan Mould vs. Sinosteel Engineering and | Jiangnan Mould vs. Qiaoyin Environmental Tech | Jiangnan Mould vs. Fujian Nanwang Environment | Jiangnan Mould vs. Guangdong Ellington Electronics |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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