Correlation Between Shanghai HYP and Where Food

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Can any of the company-specific risk be diversified away by investing in both Shanghai HYP and Where Food at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Shanghai HYP and Where Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shanghai HYP ARCH Architectural and Where Food Comes, you can compare the effects of market volatilities on Shanghai HYP and Where Food 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 HYP with a short position of Where Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai HYP and Where Food.

Diversification Opportunities for Shanghai HYP and Where Food

-0.54
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Shanghai and Where is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai HYP ARCH Architectura and Where Food Comes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Where Food Comes and Shanghai HYP 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 HYP ARCH Architectural are associated (or correlated) with Where Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Where Food Comes has no effect on the direction of Shanghai HYP i.e., Shanghai HYP and Where Food go up and down completely randomly.

Pair Corralation between Shanghai HYP and Where Food

Assuming the 90 days trading horizon Shanghai HYP ARCH Architectural is expected to under-perform the Where Food. In addition to that, Shanghai HYP is 1.57 times more volatile than Where Food Comes. It trades about -0.04 of its total potential returns per unit of risk. Where Food Comes is currently generating about 0.06 per unit of volatility. If you would invest  1,115  in Where Food Comes on August 20, 2025 and sell it today you would earn a total of  80.00  from holding Where Food Comes or generate 7.17% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy92.06%
ValuesDaily Returns

Shanghai HYP ARCH Architectura  vs.  Where Food Comes

 Performance 
       Timeline  
Shanghai HYP ARCH 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Shanghai HYP ARCH Architectural has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
Where Food Comes 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Where Food Comes are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain fundamental indicators, Where Food may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Shanghai HYP and Where Food Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Shanghai HYP and Where Food

The main advantage of trading using opposite Shanghai HYP and Where Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai HYP position performs unexpectedly, Where Food 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 Where Food will offset losses from the drop in Where Food's long position.
The idea behind Shanghai HYP ARCH Architectural and Where Food Comes pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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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