Correlation Between Shanghai Ziyan and Yankershop Food
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By analyzing existing cross correlation between Shanghai Ziyan Foods and Yankershop Food Co, you can compare the effects of market volatilities on Shanghai Ziyan and Yankershop Food 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 Yankershop Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Ziyan and Yankershop Food.
Diversification Opportunities for Shanghai Ziyan and Yankershop Food
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Yankershop is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Ziyan Foods and Yankershop Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yankershop Food 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 Yankershop Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yankershop Food has no effect on the direction of Shanghai Ziyan i.e., Shanghai Ziyan and Yankershop Food go up and down completely randomly.
Pair Corralation between Shanghai Ziyan and Yankershop Food
Assuming the 90 days trading horizon Shanghai Ziyan Foods is expected to under-perform the Yankershop Food. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Ziyan Foods is 1.08 times less risky than Yankershop Food. The stock trades about -0.03 of its potential returns per unit of risk. The Yankershop Food Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 4,657 in Yankershop Food Co on August 28, 2024 and sell it today you would earn a total of 418.00 from holding Yankershop Food Co or generate 8.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Ziyan Foods vs. Yankershop Food Co
Performance |
| Timeline |
| Shanghai Ziyan Foods |
| Yankershop Food |
Shanghai Ziyan and Yankershop Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Ziyan and Yankershop Food
The main advantage of trading using opposite Shanghai Ziyan and Yankershop Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Ziyan position performs unexpectedly, Yankershop Food 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 Yankershop Food will offset losses from the drop in Yankershop Food's long position.| Shanghai Ziyan vs. Industrial and Commercial | Shanghai Ziyan vs. Agricultural Bank of | Shanghai Ziyan vs. China Construction Bank | Shanghai Ziyan vs. Bank of China |
| Yankershop Food vs. Shenzhen Centralcon Investment | Yankershop Food vs. Tieling Newcity Investment | Yankershop Food vs. Dr Peng Telecom | Yankershop Food vs. Hunan Investment Group |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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