Correlation Between Shanghai Ziyan and Shanghai Sanyou
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By analyzing existing cross correlation between Shanghai Ziyan Foods and Shanghai Sanyou Medical, you can compare the effects of market volatilities on Shanghai Ziyan and Shanghai Sanyou 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 Sanyou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Ziyan and Shanghai Sanyou.
Diversification Opportunities for Shanghai Ziyan and Shanghai Sanyou
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shanghai and Shanghai is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Ziyan Foods and Shanghai Sanyou Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Sanyou 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 Shanghai Sanyou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Sanyou Medical has no effect on the direction of Shanghai Ziyan i.e., Shanghai Ziyan and Shanghai Sanyou go up and down completely randomly.
Pair Corralation between Shanghai Ziyan and Shanghai Sanyou
Assuming the 90 days trading horizon Shanghai Ziyan Foods is expected to generate 1.53 times more return on investment than Shanghai Sanyou. However, Shanghai Ziyan is 1.53 times more volatile than Shanghai Sanyou Medical. It trades about 0.0 of its potential returns per unit of risk. Shanghai Sanyou Medical is currently generating about 0.0 per unit of risk. If you would invest 1,787 in Shanghai Ziyan Foods on October 18, 2024 and sell it today you would lose (38.00) from holding Shanghai Ziyan Foods or give up 2.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Ziyan Foods vs. Shanghai Sanyou Medical
Performance |
| Timeline |
| Shanghai Ziyan Foods |
| Shanghai Sanyou Medical |
Shanghai Ziyan and Shanghai Sanyou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Ziyan and Shanghai Sanyou
The main advantage of trading using opposite Shanghai Ziyan and Shanghai Sanyou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Ziyan position performs unexpectedly, Shanghai Sanyou 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 Sanyou will offset losses from the drop in Shanghai Sanyou's long position.| Shanghai Ziyan vs. Fujian Longzhou Transportation | Shanghai Ziyan vs. Road Environment Technology | Shanghai Ziyan vs. Shaanxi Broadcast TV | Shanghai Ziyan vs. Montage Technology Co |
| Shanghai Sanyou vs. Iat Automobile Technology | Shanghai Sanyou vs. Cultural Investment Holdings | Shanghai Sanyou vs. Metro Investment Development | Shanghai Sanyou vs. Sinomach Automobile Co |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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