Correlation Between Shanghai Ziyan and Hengdian Entertainment
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By analyzing existing cross correlation between Shanghai Ziyan Foods and Hengdian Entertainment Co, you can compare the effects of market volatilities on Shanghai Ziyan and Hengdian Entertainment 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 Hengdian Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Ziyan and Hengdian Entertainment.
Diversification Opportunities for Shanghai Ziyan and Hengdian Entertainment
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Hengdian is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Ziyan Foods and Hengdian Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengdian Entertainment 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 Hengdian Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengdian Entertainment has no effect on the direction of Shanghai Ziyan i.e., Shanghai Ziyan and Hengdian Entertainment go up and down completely randomly.
Pair Corralation between Shanghai Ziyan and Hengdian Entertainment
Assuming the 90 days trading horizon Shanghai Ziyan Foods is expected to under-perform the Hengdian Entertainment. In addition to that, Shanghai Ziyan is 1.21 times more volatile than Hengdian Entertainment Co. It trades about -0.03 of its total potential returns per unit of risk. Hengdian Entertainment Co is currently generating about 0.01 per unit of volatility. If you would invest 1,487 in Hengdian Entertainment Co on October 30, 2024 and sell it today you would lose (12.00) from holding Hengdian Entertainment Co or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Ziyan Foods vs. Hengdian Entertainment Co
Performance |
| Timeline |
| Shanghai Ziyan Foods |
| Hengdian Entertainment |
Shanghai Ziyan and Hengdian Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Ziyan and Hengdian Entertainment
The main advantage of trading using opposite Shanghai Ziyan and Hengdian Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Ziyan position performs unexpectedly, Hengdian Entertainment 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 Hengdian Entertainment will offset losses from the drop in Hengdian Entertainment's long position.| Shanghai Ziyan vs. Ming Yang Smart | Shanghai Ziyan vs. 159681 | Shanghai Ziyan vs. 159005 | Shanghai Ziyan vs. Loctek Ergonomic Technology |
| Hengdian Entertainment vs. GRG Banking Equipment | Hengdian Entertainment vs. Tongling Nonferrous Metals | Hengdian Entertainment vs. Industrial Bank Co | Hengdian Entertainment vs. Panda Financial Holding |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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