Correlation Between Tongling Nonferrous and Shanghai Yanpu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tongling Nonferrous Metals and Shanghai Yanpu Metal, you can compare the effects of market volatilities on Tongling Nonferrous and Shanghai Yanpu 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 Tongling Nonferrous with a short position of Shanghai Yanpu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongling Nonferrous and Shanghai Yanpu.
Diversification Opportunities for Tongling Nonferrous and Shanghai Yanpu
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tongling and Shanghai is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Tongling Nonferrous Metals and Shanghai Yanpu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yanpu Metal and Tongling Nonferrous 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 Tongling Nonferrous Metals are associated (or correlated) with Shanghai Yanpu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yanpu Metal has no effect on the direction of Tongling Nonferrous i.e., Tongling Nonferrous and Shanghai Yanpu go up and down completely randomly.
Pair Corralation between Tongling Nonferrous and Shanghai Yanpu
Assuming the 90 days trading horizon Tongling Nonferrous is expected to generate 2.25 times less return on investment than Shanghai Yanpu. But when comparing it to its historical volatility, Tongling Nonferrous Metals is 1.44 times less risky than Shanghai Yanpu. It trades about 0.03 of its potential returns per unit of risk. Shanghai Yanpu Metal is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,828 in Shanghai Yanpu Metal on September 12, 2024 and sell it today you would earn a total of 1,059 from holding Shanghai Yanpu Metal or generate 37.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongling Nonferrous Metals vs. Shanghai Yanpu Metal
Performance |
| Timeline |
| Tongling Nonferrous |
| Shanghai Yanpu Metal |
Tongling Nonferrous and Shanghai Yanpu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongling Nonferrous and Shanghai Yanpu
The main advantage of trading using opposite Tongling Nonferrous and Shanghai Yanpu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongling Nonferrous position performs unexpectedly, Shanghai Yanpu 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 Yanpu will offset losses from the drop in Shanghai Yanpu's long position.| Tongling Nonferrous vs. Zhengzhou Coal Mining | Tongling Nonferrous vs. JCHX Mining Management | Tongling Nonferrous vs. Xinjiang Baodi Mining | Tongling Nonferrous vs. Sanbo Hospital Management |
| Shanghai Yanpu vs. Lutian Machinery Co | Shanghai Yanpu vs. PetroChina Co Ltd | Shanghai Yanpu vs. Bank of China | Shanghai Yanpu vs. Gansu Jiu Steel |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |