Correlation Between Hubei Yingtong and Shanghai Yanpu
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By analyzing existing cross correlation between Hubei Yingtong Telecommunication and Shanghai Yanpu Metal, you can compare the effects of market volatilities on Hubei Yingtong 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 Hubei Yingtong with a short position of Shanghai Yanpu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Yingtong and Shanghai Yanpu.
Diversification Opportunities for Hubei Yingtong and Shanghai Yanpu
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hubei and Shanghai is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Yingtong Telecommunicati 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 Hubei Yingtong 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 Hubei Yingtong Telecommunication 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 Hubei Yingtong i.e., Hubei Yingtong and Shanghai Yanpu go up and down completely randomly.
Pair Corralation between Hubei Yingtong and Shanghai Yanpu
Assuming the 90 days trading horizon Hubei Yingtong is expected to generate 1.38 times less return on investment than Shanghai Yanpu. In addition to that, Hubei Yingtong is 1.36 times more volatile than Shanghai Yanpu Metal. It trades about 0.14 of its total potential returns per unit of risk. Shanghai Yanpu Metal is currently generating about 0.27 per unit of volatility. If you would invest 3,402 in Shanghai Yanpu Metal on September 18, 2024 and sell it today you would earn a total of 578.00 from holding Shanghai Yanpu Metal or generate 16.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Hubei Yingtong Telecommunicati vs. Shanghai Yanpu Metal
Performance |
| Timeline |
| Hubei Yingtong Telec |
| Shanghai Yanpu Metal |
Hubei Yingtong and Shanghai Yanpu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Yingtong and Shanghai Yanpu
The main advantage of trading using opposite Hubei Yingtong and Shanghai Yanpu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Yingtong 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.| Hubei Yingtong vs. Industrial and Commercial | Hubei Yingtong vs. China Construction Bank | Hubei Yingtong vs. Bank of China | Hubei Yingtong vs. Agricultural Bank of |
| Shanghai Yanpu vs. BeiGene | Shanghai Yanpu vs. Kweichow Moutai Co | Shanghai Yanpu vs. Beijing Roborock Technology | Shanghai Yanpu vs. G bits Network Technology |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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