Correlation Between Shanghai Ziyan and Zhejiang Qianjiang
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By analyzing existing cross correlation between Shanghai Ziyan Foods and Zhejiang Qianjiang Motorcycle, you can compare the effects of market volatilities on Shanghai Ziyan and Zhejiang Qianjiang 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 Zhejiang Qianjiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Ziyan and Zhejiang Qianjiang.
Diversification Opportunities for Shanghai Ziyan and Zhejiang Qianjiang
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shanghai and Zhejiang is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Ziyan Foods and Zhejiang Qianjiang Motorcycle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Qianjiang 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 Zhejiang Qianjiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Qianjiang has no effect on the direction of Shanghai Ziyan i.e., Shanghai Ziyan and Zhejiang Qianjiang go up and down completely randomly.
Pair Corralation between Shanghai Ziyan and Zhejiang Qianjiang
Assuming the 90 days trading horizon Shanghai Ziyan Foods is expected to under-perform the Zhejiang Qianjiang. In addition to that, Shanghai Ziyan is 1.33 times more volatile than Zhejiang Qianjiang Motorcycle. It trades about -0.03 of its total potential returns per unit of risk. Zhejiang Qianjiang Motorcycle is currently generating about 0.17 per unit of volatility. If you would invest 1,649 in Zhejiang Qianjiang Motorcycle on October 30, 2024 and sell it today you would earn a total of 343.00 from holding Zhejiang Qianjiang Motorcycle or generate 20.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Ziyan Foods vs. Zhejiang Qianjiang Motorcycle
Performance |
| Timeline |
| Shanghai Ziyan Foods |
| Zhejiang Qianjiang |
Shanghai Ziyan and Zhejiang Qianjiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Ziyan and Zhejiang Qianjiang
The main advantage of trading using opposite Shanghai Ziyan and Zhejiang Qianjiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Ziyan position performs unexpectedly, Zhejiang Qianjiang 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 Zhejiang Qianjiang will offset losses from the drop in Zhejiang Qianjiang's long position.| Shanghai Ziyan vs. Ming Yang Smart | Shanghai Ziyan vs. 159681 | Shanghai Ziyan vs. 159005 | Shanghai Ziyan vs. Loctek Ergonomic Technology |
| Zhejiang Qianjiang vs. Industrial and Commercial | Zhejiang Qianjiang vs. China Construction Bank | Zhejiang Qianjiang vs. Agricultural Bank of | Zhejiang Qianjiang vs. Bank of China |
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 CEOs Directory module to screen CEOs from public companies around the world.
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