Correlation Between Shanghai Sanyou and Shanghai Ziyan
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By analyzing existing cross correlation between Shanghai Sanyou Medical and Shanghai Ziyan Foods, you can compare the effects of market volatilities on Shanghai Sanyou 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 Shanghai Sanyou with a short position of Shanghai Ziyan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Sanyou and Shanghai Ziyan.
Diversification Opportunities for Shanghai Sanyou and Shanghai Ziyan
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shanghai and Shanghai is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Sanyou Medical 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 Shanghai Sanyou 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 Sanyou Medical 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 Shanghai Sanyou i.e., Shanghai Sanyou and Shanghai Ziyan go up and down completely randomly.
Pair Corralation between Shanghai Sanyou and Shanghai Ziyan
Assuming the 90 days trading horizon Shanghai Sanyou Medical is expected to generate 1.08 times more return on investment than Shanghai Ziyan. However, Shanghai Sanyou is 1.08 times more volatile than Shanghai Ziyan Foods. It trades about 0.04 of its potential returns per unit of risk. Shanghai Ziyan Foods is currently generating about 0.0 per unit of risk. If you would invest 1,557 in Shanghai Sanyou Medical on October 25, 2024 and sell it today you would earn a total of 295.00 from holding Shanghai Sanyou Medical or generate 18.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Sanyou Medical vs. Shanghai Ziyan Foods
Performance |
| Timeline |
| Shanghai Sanyou Medical |
| Shanghai Ziyan Foods |
Shanghai Sanyou and Shanghai Ziyan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Sanyou and Shanghai Ziyan
The main advantage of trading using opposite Shanghai Sanyou and Shanghai Ziyan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Sanyou 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.| Shanghai Sanyou vs. Agricultural Bank of | Shanghai Sanyou vs. Industrial and Commercial | Shanghai Sanyou vs. Bank of China | Shanghai Sanyou vs. China Construction Bank |
| Shanghai Ziyan vs. PetroChina Co Ltd | Shanghai Ziyan vs. Gansu Jiu Steel | Shanghai Ziyan vs. Ming Yang Smart | Shanghai Ziyan vs. Aba Chemicals Corp |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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