Correlation Between Shanghai Ziyan and Chison Medical
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By analyzing existing cross correlation between Shanghai Ziyan Foods and Chison Medical Technologies, you can compare the effects of market volatilities on Shanghai Ziyan and Chison 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 Chison Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Ziyan and Chison Medical.
Diversification Opportunities for Shanghai Ziyan and Chison Medical
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Chison is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Ziyan Foods and Chison Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chison Medical Techn 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 Chison Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chison Medical Techn has no effect on the direction of Shanghai Ziyan i.e., Shanghai Ziyan and Chison Medical go up and down completely randomly.
Pair Corralation between Shanghai Ziyan and Chison Medical
Assuming the 90 days trading horizon Shanghai Ziyan Foods is expected to generate 0.68 times more return on investment than Chison Medical. However, Shanghai Ziyan Foods is 1.48 times less risky than Chison Medical. It trades about -0.02 of its potential returns per unit of risk. Chison Medical Technologies is currently generating about -0.03 per unit of risk. If you would invest 2,191 in Shanghai Ziyan Foods on September 4, 2024 and sell it today you would lose (317.00) from holding Shanghai Ziyan Foods or give up 14.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Ziyan Foods vs. Chison Medical Technologies
Performance |
| Timeline |
| Shanghai Ziyan Foods |
| Chison Medical Techn |
Shanghai Ziyan and Chison Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Ziyan and Chison Medical
The main advantage of trading using opposite Shanghai Ziyan and Chison Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Ziyan position performs unexpectedly, Chison 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 Chison Medical will offset losses from the drop in Chison Medical's long position.| Shanghai Ziyan vs. Holitech Technology Co | Shanghai Ziyan vs. Heilongjiang Transport Development | Shanghai Ziyan vs. Hainan Haiqi Transportation | Shanghai Ziyan vs. Hubei Forbon Technology |
| Chison Medical vs. Mengtian Home Group | Chison Medical vs. Dareway Software Co | Chison Medical vs. Hangzhou Pinming Software | Chison Medical vs. Zoy Home Furnishing |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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