Correlation Between Shanghai Ziyan and Hygon Information
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By analyzing existing cross correlation between Shanghai Ziyan Foods and Hygon Information Technology, you can compare the effects of market volatilities on Shanghai Ziyan and Hygon Information 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 Hygon Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Ziyan and Hygon Information.
Diversification Opportunities for Shanghai Ziyan and Hygon Information
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Hygon is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Ziyan Foods and Hygon Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hygon 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 Hygon Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hygon Information has no effect on the direction of Shanghai Ziyan i.e., Shanghai Ziyan and Hygon Information go up and down completely randomly.
Pair Corralation between Shanghai Ziyan and Hygon Information
Assuming the 90 days trading horizon Shanghai Ziyan Foods is expected to under-perform the Hygon Information. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Ziyan Foods is 1.65 times less risky than Hygon Information. The stock trades about -0.03 of its potential returns per unit of risk. The Hygon Information Technology is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4,489 in Hygon Information Technology on October 11, 2024 and sell it today you would earn a total of 10,500 from holding Hygon Information Technology or generate 233.91% 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. Hygon Information Technology
Performance |
| Timeline |
| Shanghai Ziyan Foods |
| Hygon Information |
Shanghai Ziyan and Hygon Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Ziyan and Hygon Information
The main advantage of trading using opposite Shanghai Ziyan and Hygon Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Ziyan position performs unexpectedly, Hygon Information 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 Hygon Information will offset losses from the drop in Hygon Information's long position.| Shanghai Ziyan vs. Fujian Anjoy Foods | Shanghai Ziyan vs. Tongyu Communication | Shanghai Ziyan vs. SUNSEA Telecommunications Co | Shanghai Ziyan vs. Ningbo Fangzheng Automobile |
| Hygon Information vs. Shanghai Ziyan Foods | Hygon Information vs. Xiwang Foodstuffs Co | Hygon Information vs. Qtone Education Group | Hygon Information vs. Gan Yuan 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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