Correlation Between Piotech and Shanghai Jinfeng
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By analyzing existing cross correlation between Piotech Inc A and Shanghai Jinfeng Wine, you can compare the effects of market volatilities on Piotech and Shanghai Jinfeng 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 Piotech with a short position of Shanghai Jinfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piotech and Shanghai Jinfeng.
Diversification Opportunities for Piotech and Shanghai Jinfeng
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Piotech and Shanghai is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Piotech Inc A and Shanghai Jinfeng Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jinfeng Wine and Piotech 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 Piotech Inc A are associated (or correlated) with Shanghai Jinfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jinfeng Wine has no effect on the direction of Piotech i.e., Piotech and Shanghai Jinfeng go up and down completely randomly.
Pair Corralation between Piotech and Shanghai Jinfeng
Assuming the 90 days trading horizon Piotech Inc A is expected to generate 1.79 times more return on investment than Shanghai Jinfeng. However, Piotech is 1.79 times more volatile than Shanghai Jinfeng Wine. It trades about 0.03 of its potential returns per unit of risk. Shanghai Jinfeng Wine is currently generating about 0.0 per unit of risk. If you would invest 15,955 in Piotech Inc A on September 3, 2024 and sell it today you would earn a total of 3,976 from holding Piotech Inc A or generate 24.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piotech Inc A vs. Shanghai Jinfeng Wine
Performance |
| Timeline |
| Piotech Inc A |
| Shanghai Jinfeng Wine |
Piotech and Shanghai Jinfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piotech and Shanghai Jinfeng
The main advantage of trading using opposite Piotech and Shanghai Jinfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piotech position performs unexpectedly, Shanghai Jinfeng 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 Jinfeng will offset losses from the drop in Shanghai Jinfeng's long position.| Piotech vs. Westone Information Industry | Piotech vs. Shandong Mining Machinery | Piotech vs. Jiangxi Naipu Mining | Piotech vs. Air China Ltd |
| Shanghai Jinfeng vs. Tsingtao Brewery Co | Shanghai Jinfeng vs. Thinkingdom Media Group | Shanghai Jinfeng vs. Nanjing OLO Home | Shanghai Jinfeng vs. China 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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