Correlation Between Shanghai Ziyan and Kingclean Electric
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By analyzing existing cross correlation between Shanghai Ziyan Foods and Kingclean Electric Co, you can compare the effects of market volatilities on Shanghai Ziyan and Kingclean Electric 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 Kingclean Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Ziyan and Kingclean Electric.
Diversification Opportunities for Shanghai Ziyan and Kingclean Electric
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Kingclean is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Ziyan Foods and Kingclean Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingclean Electric 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 Kingclean Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingclean Electric has no effect on the direction of Shanghai Ziyan i.e., Shanghai Ziyan and Kingclean Electric go up and down completely randomly.
Pair Corralation between Shanghai Ziyan and Kingclean Electric
Assuming the 90 days trading horizon Shanghai Ziyan Foods is expected to under-perform the Kingclean Electric. In addition to that, Shanghai Ziyan is 1.0 times more volatile than Kingclean Electric Co. It trades about -0.04 of its total potential returns per unit of risk. Kingclean Electric Co is currently generating about -0.01 per unit of volatility. If you would invest 2,833 in Kingclean Electric Co on September 12, 2024 and sell it today you would lose (473.00) from holding Kingclean Electric Co or give up 16.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Ziyan Foods vs. Kingclean Electric Co
Performance |
| Timeline |
| Shanghai Ziyan Foods |
| Kingclean Electric |
Shanghai Ziyan and Kingclean Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Ziyan and Kingclean Electric
The main advantage of trading using opposite Shanghai Ziyan and Kingclean Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Ziyan position performs unexpectedly, Kingclean Electric 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 Kingclean Electric will offset losses from the drop in Kingclean Electric's long position.| Shanghai Ziyan vs. Hubeiyichang Transportation Group | Shanghai Ziyan vs. Anhui Transport Consulting | Shanghai Ziyan vs. Zhejiang Qianjiang Motorcycle | Shanghai Ziyan vs. Jinhui Liquor Co |
| Kingclean Electric vs. HaiXin Foods Co | Kingclean Electric vs. Cicc Fund Management | Kingclean Electric vs. Shanghai Ziyan Foods | Kingclean Electric vs. Ligao Foods CoLtd |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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