Correlation Between Shanghai Ziyan and Suofeiya Home
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Ziyan Foods and Suofeiya Home Collection, you can compare the effects of market volatilities on Shanghai Ziyan and Suofeiya Home 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 Suofeiya Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Ziyan and Suofeiya Home.
Diversification Opportunities for Shanghai Ziyan and Suofeiya Home
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Suofeiya is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Ziyan Foods and Suofeiya Home Collection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suofeiya Home Collection 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 Suofeiya Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suofeiya Home Collection has no effect on the direction of Shanghai Ziyan i.e., Shanghai Ziyan and Suofeiya Home go up and down completely randomly.
Pair Corralation between Shanghai Ziyan and Suofeiya Home
Assuming the 90 days trading horizon Shanghai Ziyan Foods is expected to generate 0.88 times more return on investment than Suofeiya Home. However, Shanghai Ziyan Foods is 1.14 times less risky than Suofeiya Home. It trades about 0.21 of its potential returns per unit of risk. Suofeiya Home Collection is currently generating about -0.05 per unit of risk. If you would invest 1,627 in Shanghai Ziyan Foods on September 2, 2024 and sell it today you would earn a total of 194.00 from holding Shanghai Ziyan Foods or generate 11.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Ziyan Foods vs. Suofeiya Home Collection
Performance |
| Timeline |
| Shanghai Ziyan Foods |
| Suofeiya Home Collection |
Shanghai Ziyan and Suofeiya Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Ziyan and Suofeiya Home
The main advantage of trading using opposite Shanghai Ziyan and Suofeiya Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Ziyan position performs unexpectedly, Suofeiya Home 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 Suofeiya Home will offset losses from the drop in Suofeiya Home's long position.| Shanghai Ziyan vs. China State Construction | Shanghai Ziyan vs. Poly Real Estate | Shanghai Ziyan vs. China Vanke Co | Shanghai Ziyan vs. China Merchants Shekou |
| Suofeiya Home vs. Chengdu Spaceon Electronics | Suofeiya Home vs. JCHX Mining Management | Suofeiya Home vs. Shanghai CEO Environmental | Suofeiya Home vs. Holitech Technology 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.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |