Correlation Between Shanghai Yaoji and Guizhou Chanhen
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By analyzing existing cross correlation between Shanghai Yaoji Playing and Guizhou Chanhen Chemical, you can compare the effects of market volatilities on Shanghai Yaoji and Guizhou Chanhen 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 Yaoji with a short position of Guizhou Chanhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yaoji and Guizhou Chanhen.
Diversification Opportunities for Shanghai Yaoji and Guizhou Chanhen
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Guizhou is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yaoji Playing and Guizhou Chanhen Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guizhou Chanhen Chemical and Shanghai Yaoji 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 Yaoji Playing are associated (or correlated) with Guizhou Chanhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guizhou Chanhen Chemical has no effect on the direction of Shanghai Yaoji i.e., Shanghai Yaoji and Guizhou Chanhen go up and down completely randomly.
Pair Corralation between Shanghai Yaoji and Guizhou Chanhen
Assuming the 90 days trading horizon Shanghai Yaoji Playing is expected to generate 1.57 times more return on investment than Guizhou Chanhen. However, Shanghai Yaoji is 1.57 times more volatile than Guizhou Chanhen Chemical. It trades about 0.08 of its potential returns per unit of risk. Guizhou Chanhen Chemical is currently generating about 0.0 per unit of risk. If you would invest 2,814 in Shanghai Yaoji Playing on August 28, 2024 and sell it today you would earn a total of 166.00 from holding Shanghai Yaoji Playing or generate 5.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yaoji Playing vs. Guizhou Chanhen Chemical
Performance |
| Timeline |
| Shanghai Yaoji Playing |
| Guizhou Chanhen Chemical |
Shanghai Yaoji and Guizhou Chanhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yaoji and Guizhou Chanhen
The main advantage of trading using opposite Shanghai Yaoji and Guizhou Chanhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yaoji position performs unexpectedly, Guizhou Chanhen 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 Guizhou Chanhen will offset losses from the drop in Guizhou Chanhen's long position.| Shanghai Yaoji vs. Shenzhen MYS Environmental | Shanghai Yaoji vs. AVIC Fund Management | Shanghai Yaoji vs. Shenzhen Bingchuan Network | Shanghai Yaoji vs. Penghua Shenzhen Energy |
| Guizhou Chanhen vs. Zijin Mining Group | Guizhou Chanhen vs. Wanhua Chemical Group | Guizhou Chanhen vs. Baoshan Iron Steel | Guizhou Chanhen vs. Shandong Gold Mining |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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