Correlation Between Namchow Food and Shanghai Ziyan
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By analyzing existing cross correlation between Namchow Food Group and Shanghai Ziyan Foods, you can compare the effects of market volatilities on Namchow Food 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 Namchow Food with a short position of Shanghai Ziyan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Namchow Food and Shanghai Ziyan.
Diversification Opportunities for Namchow Food and Shanghai Ziyan
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Namchow and Shanghai is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Namchow Food Group 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 Namchow Food 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 Namchow Food Group 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 Namchow Food i.e., Namchow Food and Shanghai Ziyan go up and down completely randomly.
Pair Corralation between Namchow Food and Shanghai Ziyan
Assuming the 90 days trading horizon Namchow Food Group is expected to under-perform the Shanghai Ziyan. But the stock apears to be less risky and, when comparing its historical volatility, Namchow Food Group is 1.2 times less risky than Shanghai Ziyan. The stock trades about -0.08 of its potential returns per unit of risk. The Shanghai Ziyan Foods is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,696 in Shanghai Ziyan Foods on August 28, 2024 and sell it today you would earn a total of 207.00 from holding Shanghai Ziyan Foods or generate 12.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Namchow Food Group vs. Shanghai Ziyan Foods
Performance |
| Timeline |
| Namchow Food Group |
| Shanghai Ziyan Foods |
Namchow Food and Shanghai Ziyan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Namchow Food and Shanghai Ziyan
The main advantage of trading using opposite Namchow Food and Shanghai Ziyan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Namchow Food 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.| Namchow Food vs. China Petroleum Chemical | Namchow Food vs. PetroChina Co Ltd | Namchow Food vs. China State Construction | Namchow Food vs. China Railway Group |
| Shanghai Ziyan vs. Industrial and Commercial | Shanghai Ziyan vs. Agricultural Bank of | Shanghai Ziyan vs. China Construction Bank | Shanghai Ziyan vs. Bank of China |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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