Correlation Between Shanghai Ziyan and Juewei Food
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Ziyan Foods and Juewei Food Co, you can compare the effects of market volatilities on Shanghai Ziyan and Juewei Food 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 Juewei Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Ziyan and Juewei Food.
Diversification Opportunities for Shanghai Ziyan and Juewei Food
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Juewei is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Ziyan Foods and Juewei Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juewei Food 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 Juewei Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juewei Food has no effect on the direction of Shanghai Ziyan i.e., Shanghai Ziyan and Juewei Food go up and down completely randomly.
Pair Corralation between Shanghai Ziyan and Juewei Food
Assuming the 90 days trading horizon Shanghai Ziyan Foods is expected to generate 0.57 times more return on investment than Juewei Food. However, Shanghai Ziyan Foods is 1.75 times less risky than Juewei Food. It trades about 0.23 of its potential returns per unit of risk. Juewei Food Co is currently generating about 0.07 per unit of risk. If you would invest 1,696 in Shanghai Ziyan Foods on August 28, 2024 and sell it today you would earn a total of 207.00 from holding Shanghai Ziyan Foods or generate 12.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Ziyan Foods vs. Juewei Food Co
Performance |
| Timeline |
| Shanghai Ziyan Foods |
| Juewei Food |
Shanghai Ziyan and Juewei Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Ziyan and Juewei Food
The main advantage of trading using opposite Shanghai Ziyan and Juewei Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Ziyan position performs unexpectedly, Juewei Food 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 Juewei Food will offset losses from the drop in Juewei Food's long position.| Shanghai Ziyan vs. Industrial and Commercial | Shanghai Ziyan vs. Agricultural Bank of | Shanghai Ziyan vs. China Construction Bank | Shanghai Ziyan vs. Bank of China |
| Juewei Food vs. Uxi Unicomp Technology | Juewei Food vs. Kunshan Guoli Electronic | Juewei Food vs. Success Electronics | Juewei Food vs. ROPEOK Technology Group |
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.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |