Correlation Between Allwin Telecommunicatio and Shanghai Yanpu
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By analyzing existing cross correlation between Allwin Telecommunication Co and Shanghai Yanpu Metal, you can compare the effects of market volatilities on Allwin Telecommunicatio 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 Allwin Telecommunicatio with a short position of Shanghai Yanpu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allwin Telecommunicatio and Shanghai Yanpu.
Diversification Opportunities for Allwin Telecommunicatio and Shanghai Yanpu
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Allwin and Shanghai is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Allwin Telecommunication Co 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 Allwin Telecommunicatio 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 Allwin Telecommunication Co 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 Allwin Telecommunicatio i.e., Allwin Telecommunicatio and Shanghai Yanpu go up and down completely randomly.
Pair Corralation between Allwin Telecommunicatio and Shanghai Yanpu
Assuming the 90 days trading horizon Allwin Telecommunication Co is expected to under-perform the Shanghai Yanpu. In addition to that, Allwin Telecommunicatio is 1.27 times more volatile than Shanghai Yanpu Metal. It trades about -0.01 of its total potential returns per unit of risk. Shanghai Yanpu Metal is currently generating about 0.01 per unit of volatility. If you would invest 3,751 in Shanghai Yanpu Metal on October 29, 2024 and sell it today you would lose (124.00) from holding Shanghai Yanpu Metal or give up 3.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allwin Telecommunication Co vs. Shanghai Yanpu Metal
Performance |
| Timeline |
| Allwin Telecommunicatio |
| Shanghai Yanpu Metal |
Allwin Telecommunicatio and Shanghai Yanpu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allwin Telecommunicatio and Shanghai Yanpu
The main advantage of trading using opposite Allwin Telecommunicatio and Shanghai Yanpu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allwin Telecommunicatio 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.The idea behind Allwin Telecommunication Co and Shanghai Yanpu Metal 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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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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