Correlation Between Jiangsu Pacific and Shanghai Ziyan
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By analyzing existing cross correlation between Jiangsu Pacific Quartz and Shanghai Ziyan Foods, you can compare the effects of market volatilities on Jiangsu Pacific and Shanghai Ziyan 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 Jiangsu Pacific with a short position of Shanghai Ziyan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Pacific and Shanghai Ziyan.
Diversification Opportunities for Jiangsu Pacific and Shanghai Ziyan
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Shanghai is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Pacific Quartz and Shanghai Ziyan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Ziyan Foods and Jiangsu Pacific 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 Jiangsu Pacific Quartz are associated (or correlated) with Shanghai Ziyan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Ziyan Foods has no effect on the direction of Jiangsu Pacific i.e., Jiangsu Pacific and Shanghai Ziyan go up and down completely randomly.
Pair Corralation between Jiangsu Pacific and Shanghai Ziyan
Assuming the 90 days trading horizon Jiangsu Pacific Quartz is expected to under-perform the Shanghai Ziyan. In addition to that, Jiangsu Pacific is 1.39 times more volatile than Shanghai Ziyan Foods. It trades about -0.01 of its total potential returns per unit of risk. Shanghai Ziyan Foods is currently generating about 0.28 per unit of volatility. If you would invest 1,656 in Shanghai Ziyan Foods on December 4, 2024 and sell it today you would earn a total of 114.00 from holding Shanghai Ziyan Foods or generate 6.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Pacific Quartz vs. Shanghai Ziyan Foods
Performance |
| Timeline |
| Jiangsu Pacific Quartz |
| Shanghai Ziyan Foods |
Jiangsu Pacific and Shanghai Ziyan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Pacific and Shanghai Ziyan
The main advantage of trading using opposite Jiangsu Pacific and Shanghai Ziyan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Pacific position performs unexpectedly, Shanghai Ziyan 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 Ziyan will offset losses from the drop in Shanghai Ziyan's long position.| Jiangsu Pacific vs. ROPEOK Technology Group | Jiangsu Pacific vs. Jiujiang Shanshui Technology | Jiangsu Pacific vs. Soyea Technology Co | Jiangsu Pacific vs. Dhc Software Co |
| Shanghai Ziyan vs. Jiangsu Phoenix Publishing | Shanghai Ziyan vs. Chinese Universe Publishing | Shanghai Ziyan vs. Tangel Publishing | Shanghai Ziyan vs. Zhejiang Publishing Media |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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