Correlation Between Shanghai Ziyan and China Marine
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By analyzing existing cross correlation between Shanghai Ziyan Foods and China Marine Information, you can compare the effects of market volatilities on Shanghai Ziyan and China Marine 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 China Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Ziyan and China Marine.
Diversification Opportunities for Shanghai Ziyan and China Marine
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shanghai and China is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Ziyan Foods and China Marine Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Marine Information 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 China Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Marine Information has no effect on the direction of Shanghai Ziyan i.e., Shanghai Ziyan and China Marine go up and down completely randomly.
Pair Corralation between Shanghai Ziyan and China Marine
Assuming the 90 days trading horizon Shanghai Ziyan Foods is expected to under-perform the China Marine. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Ziyan Foods is 1.16 times less risky than China Marine. The stock trades about -0.01 of its potential returns per unit of risk. The China Marine Information is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,930 in China Marine Information on October 18, 2024 and sell it today you would earn a total of 661.00 from holding China Marine Information or generate 34.25% 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. China Marine Information
Performance |
| Timeline |
| Shanghai Ziyan Foods |
| China Marine Information |
Shanghai Ziyan and China Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Ziyan and China Marine
The main advantage of trading using opposite Shanghai Ziyan and China Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Ziyan position performs unexpectedly, China Marine 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 China Marine will offset losses from the drop in China Marine's long position.| Shanghai Ziyan vs. Beijing Watertek Information | Shanghai Ziyan vs. StarPower Semiconductor | Shanghai Ziyan vs. Zhongfu Information | Shanghai Ziyan vs. Qiming Information Technology |
| China Marine vs. Ligao Foods CoLtd | China Marine vs. Anji Foodstuff Co | China Marine vs. Shanghai Ziyan Foods | China Marine vs. JuneYao Dairy 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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