Correlation Between Shanghai Ziyan and Sinomach Automobile
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By analyzing existing cross correlation between Shanghai Ziyan Foods and Sinomach Automobile Co, you can compare the effects of market volatilities on Shanghai Ziyan and Sinomach Automobile 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 Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Ziyan and Sinomach Automobile.
Diversification Opportunities for Shanghai Ziyan and Sinomach Automobile
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shanghai and Sinomach is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Ziyan Foods and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile 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 Sinomach Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach Automobile has no effect on the direction of Shanghai Ziyan i.e., Shanghai Ziyan and Sinomach Automobile go up and down completely randomly.
Pair Corralation between Shanghai Ziyan and Sinomach Automobile
Assuming the 90 days trading horizon Shanghai Ziyan Foods is expected to under-perform the Sinomach Automobile. In addition to that, Shanghai Ziyan is 1.48 times more volatile than Sinomach Automobile Co. It trades about -0.33 of its total potential returns per unit of risk. Sinomach Automobile Co is currently generating about -0.03 per unit of volatility. If you would invest 650.00 in Sinomach Automobile Co on October 30, 2024 and sell it today you would lose (12.00) from holding Sinomach Automobile Co or give up 1.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Ziyan Foods vs. Sinomach Automobile Co
Performance |
| Timeline |
| Shanghai Ziyan Foods |
| Sinomach Automobile |
Shanghai Ziyan and Sinomach Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Ziyan and Sinomach Automobile
The main advantage of trading using opposite Shanghai Ziyan and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Ziyan position performs unexpectedly, Sinomach Automobile 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 Sinomach Automobile will offset losses from the drop in Sinomach Automobile's long position.| Shanghai Ziyan vs. Ming Yang Smart | Shanghai Ziyan vs. 159681 | Shanghai Ziyan vs. 159005 | Shanghai Ziyan vs. Loctek Ergonomic Technology |
| Sinomach Automobile vs. Muyuan Foodstuff Co | Sinomach Automobile vs. Shenzhen Centralcon Investment | Sinomach Automobile vs. Vanfund Urban Investment | Sinomach Automobile vs. Zoje Resources Investment |
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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