Correlation Between Sinosteel Engineering and Shanghai Lingyun
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By analyzing existing cross correlation between Sinosteel Engineering and and Shanghai Lingyun Industries, you can compare the effects of market volatilities on Sinosteel Engineering and Shanghai Lingyun 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 Sinosteel Engineering with a short position of Shanghai Lingyun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinosteel Engineering and Shanghai Lingyun.
Diversification Opportunities for Sinosteel Engineering and Shanghai Lingyun
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sinosteel and Shanghai is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Sinosteel Engineering and and Shanghai Lingyun Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Lingyun Ind and Sinosteel Engineering 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 Sinosteel Engineering and are associated (or correlated) with Shanghai Lingyun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Lingyun Ind has no effect on the direction of Sinosteel Engineering i.e., Sinosteel Engineering and Shanghai Lingyun go up and down completely randomly.
Pair Corralation between Sinosteel Engineering and Shanghai Lingyun
Assuming the 90 days trading horizon Sinosteel Engineering and is expected to generate 0.48 times more return on investment than Shanghai Lingyun. However, Sinosteel Engineering and is 2.1 times less risky than Shanghai Lingyun. It trades about 0.14 of its potential returns per unit of risk. Shanghai Lingyun Industries is currently generating about -0.08 per unit of risk. If you would invest 647.00 in Sinosteel Engineering and on August 30, 2024 and sell it today you would earn a total of 41.00 from holding Sinosteel Engineering and or generate 6.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinosteel Engineering and vs. Shanghai Lingyun Industries
Performance |
| Timeline |
| Sinosteel Engineering and |
| Shanghai Lingyun Ind |
Sinosteel Engineering and Shanghai Lingyun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinosteel Engineering and Shanghai Lingyun
The main advantage of trading using opposite Sinosteel Engineering and Shanghai Lingyun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinosteel Engineering position performs unexpectedly, Shanghai Lingyun 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 Lingyun will offset losses from the drop in Shanghai Lingyun's long position.| Sinosteel Engineering vs. Shenzhen MTC Co | Sinosteel Engineering vs. Ming Yang Smart | Sinosteel Engineering vs. Changzhou Almaden Co | Sinosteel Engineering vs. 159681 |
| Shanghai Lingyun vs. Sinosteel Engineering and | Shanghai Lingyun vs. Jiangxi JDL Environmental | Shanghai Lingyun vs. Guangdong Liantai Environmental | Shanghai Lingyun vs. Tianjin Capital Environmental |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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