Correlation Between Shanghai Ziyan and Anhui Tongguan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Ziyan Foods and Anhui Tongguan Copper, you can compare the effects of market volatilities on Shanghai Ziyan and Anhui Tongguan 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 Anhui Tongguan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Ziyan and Anhui Tongguan.
Diversification Opportunities for Shanghai Ziyan and Anhui Tongguan
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shanghai and Anhui is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Ziyan Foods and Anhui Tongguan Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Tongguan Copper 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 Anhui Tongguan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Tongguan Copper has no effect on the direction of Shanghai Ziyan i.e., Shanghai Ziyan and Anhui Tongguan go up and down completely randomly.
Pair Corralation between Shanghai Ziyan and Anhui Tongguan
Assuming the 90 days trading horizon Shanghai Ziyan is expected to generate 1.52 times less return on investment than Anhui Tongguan. In addition to that, Shanghai Ziyan is 1.0 times more volatile than Anhui Tongguan Copper. It trades about 0.07 of its total potential returns per unit of risk. Anhui Tongguan Copper is currently generating about 0.11 per unit of volatility. If you would invest 847.00 in Anhui Tongguan Copper on October 18, 2024 and sell it today you would earn a total of 253.00 from holding Anhui Tongguan Copper or generate 29.87% 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. Anhui Tongguan Copper
Performance |
| Timeline |
| Shanghai Ziyan Foods |
| Anhui Tongguan Copper |
Shanghai Ziyan and Anhui Tongguan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Ziyan and Anhui Tongguan
The main advantage of trading using opposite Shanghai Ziyan and Anhui Tongguan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Ziyan position performs unexpectedly, Anhui Tongguan 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 Anhui Tongguan will offset losses from the drop in Anhui Tongguan's long position.| Shanghai Ziyan vs. Fujian Longzhou Transportation | Shanghai Ziyan vs. Road Environment Technology | Shanghai Ziyan vs. Shaanxi Broadcast TV | Shanghai Ziyan vs. Montage Technology Co |
| Anhui Tongguan vs. Shanghai Ziyan Foods | Anhui Tongguan vs. Chongqing Sulian Plastic | Anhui Tongguan vs. Kangxin New Materials | Anhui Tongguan vs. Guilin Seamild 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |