Correlation Between Shanghai Ziyan and Eyebright Medical
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By analyzing existing cross correlation between Shanghai Ziyan Foods and Eyebright Medical Technology, you can compare the effects of market volatilities on Shanghai Ziyan and Eyebright Medical 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 Eyebright Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Ziyan and Eyebright Medical.
Diversification Opportunities for Shanghai Ziyan and Eyebright Medical
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shanghai and Eyebright is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Ziyan Foods and Eyebright Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eyebright Medical 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 Eyebright Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eyebright Medical has no effect on the direction of Shanghai Ziyan i.e., Shanghai Ziyan and Eyebright Medical go up and down completely randomly.
Pair Corralation between Shanghai Ziyan and Eyebright Medical
Assuming the 90 days trading horizon Shanghai Ziyan Foods is expected to generate 0.69 times more return on investment than Eyebright Medical. However, Shanghai Ziyan Foods is 1.44 times less risky than Eyebright Medical. It trades about -0.03 of its potential returns per unit of risk. Eyebright Medical Technology is currently generating about -0.03 per unit of risk. If you would invest 2,578 in Shanghai Ziyan Foods on October 27, 2024 and sell it today you would lose (908.00) from holding Shanghai Ziyan Foods or give up 35.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Ziyan Foods vs. Eyebright Medical Technology
Performance |
| Timeline |
| Shanghai Ziyan Foods |
| Eyebright Medical |
Shanghai Ziyan and Eyebright Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Ziyan and Eyebright Medical
The main advantage of trading using opposite Shanghai Ziyan and Eyebright Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Ziyan position performs unexpectedly, Eyebright Medical 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 Eyebright Medical will offset losses from the drop in Eyebright Medical's long position.| Shanghai Ziyan vs. Ming Yang Smart | Shanghai Ziyan vs. 159681 | Shanghai Ziyan vs. 159005 | Shanghai Ziyan vs. Loctek Ergonomic Technology |
| Eyebright Medical vs. Agricultural Bank of | Eyebright Medical vs. Industrial and Commercial | Eyebright Medical vs. Bank of China | Eyebright Medical vs. China Construction Bank |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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