Correlation Between Shanghai Ziyan and Shanghai Action
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By analyzing existing cross correlation between Shanghai Ziyan Foods and Shanghai Action Education, you can compare the effects of market volatilities on Shanghai Ziyan and Shanghai Action 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 Shanghai Action. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Ziyan and Shanghai Action.
Diversification Opportunities for Shanghai Ziyan and Shanghai Action
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Shanghai is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Ziyan Foods and Shanghai Action Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Action Education 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 Shanghai Action. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Action Education has no effect on the direction of Shanghai Ziyan i.e., Shanghai Ziyan and Shanghai Action go up and down completely randomly.
Pair Corralation between Shanghai Ziyan and Shanghai Action
Assuming the 90 days trading horizon Shanghai Ziyan Foods is expected to generate 0.89 times more return on investment than Shanghai Action. However, Shanghai Ziyan Foods is 1.12 times less risky than Shanghai Action. It trades about 0.11 of its potential returns per unit of risk. Shanghai Action Education is currently generating about 0.07 per unit of risk. If you would invest 1,746 in Shanghai Ziyan Foods on September 13, 2024 and sell it today you would earn a total of 100.00 from holding Shanghai Ziyan Foods or generate 5.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Ziyan Foods vs. Shanghai Action Education
Performance |
| Timeline |
| Shanghai Ziyan Foods |
| Shanghai Action Education |
Shanghai Ziyan and Shanghai Action Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Ziyan and Shanghai Action
The main advantage of trading using opposite Shanghai Ziyan and Shanghai Action positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Ziyan position performs unexpectedly, Shanghai Action 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 Shanghai Action will offset losses from the drop in Shanghai Action's long position.| Shanghai Ziyan vs. Zhejiang Construction Investment | Shanghai Ziyan vs. Fujian Newland Computer | Shanghai Ziyan vs. Kuang Chi Technologies | Shanghai Ziyan vs. Jonjee Hi tech Industrial |
| Shanghai Action vs. SUNSEA Telecommunications Co | Shanghai Action vs. Xinjiang Communications Construction | Shanghai Action vs. Anji Foodstuff Co | Shanghai Action vs. Shanghai Ziyan Foods |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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