Correlation Between Chison Medical and Shanghai Ziyan
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By analyzing existing cross correlation between Chison Medical Technologies and Shanghai Ziyan Foods, you can compare the effects of market volatilities on Chison Medical 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 Chison Medical with a short position of Shanghai Ziyan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chison Medical and Shanghai Ziyan.
Diversification Opportunities for Chison Medical and Shanghai Ziyan
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chison and Shanghai is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Chison Medical Technologies 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 Chison Medical 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 Chison Medical Technologies 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 Chison Medical i.e., Chison Medical and Shanghai Ziyan go up and down completely randomly.
Pair Corralation between Chison Medical and Shanghai Ziyan
Assuming the 90 days trading horizon Chison Medical is expected to generate 2.84 times less return on investment than Shanghai Ziyan. In addition to that, Chison Medical is 1.32 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 0.03 per unit of volatility. If you would invest 1,707 in Shanghai Ziyan Foods on September 3, 2024 and sell it today you would earn a total of 114.00 from holding Shanghai Ziyan Foods or generate 6.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chison Medical Technologies vs. Shanghai Ziyan Foods
Performance |
| Timeline |
| Chison Medical Techn |
| Shanghai Ziyan Foods |
Chison Medical and Shanghai Ziyan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chison Medical and Shanghai Ziyan
The main advantage of trading using opposite Chison Medical and Shanghai Ziyan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chison Medical 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.| Chison Medical vs. Marssenger Kitchenware Co | Chison Medical vs. Sunwave Communications Co | Chison Medical vs. Chahua Modern Housewares | Chison Medical vs. Anhui Jianghuai Automobile |
| Shanghai Ziyan vs. PetroChina Co Ltd | Shanghai Ziyan vs. China Mobile Limited | Shanghai Ziyan vs. Industrial and Commercial | Shanghai Ziyan vs. China Life Insurance |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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