Correlation Between Porton Fine and Shanghai Yanpu
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By analyzing existing cross correlation between Porton Fine Chemicals and Shanghai Yanpu Metal, you can compare the effects of market volatilities on Porton Fine 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 Porton Fine with a short position of Shanghai Yanpu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Porton Fine and Shanghai Yanpu.
Diversification Opportunities for Porton Fine and Shanghai Yanpu
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Porton and Shanghai is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Porton Fine Chemicals 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 Porton Fine 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 Porton Fine Chemicals 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 Porton Fine i.e., Porton Fine and Shanghai Yanpu go up and down completely randomly.
Pair Corralation between Porton Fine and Shanghai Yanpu
Assuming the 90 days trading horizon Porton Fine Chemicals is expected to under-perform the Shanghai Yanpu. In addition to that, Porton Fine is 1.14 times more volatile than Shanghai Yanpu Metal. It trades about -0.06 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 3,684 in Shanghai Yanpu Metal on October 16, 2024 and sell it today you would earn a total of 40.00 from holding Shanghai Yanpu Metal or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Porton Fine Chemicals vs. Shanghai Yanpu Metal
Performance |
| Timeline |
| Porton Fine Chemicals |
| Shanghai Yanpu Metal |
Porton Fine and Shanghai Yanpu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Porton Fine and Shanghai Yanpu
The main advantage of trading using opposite Porton Fine and Shanghai Yanpu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Porton Fine 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.| Porton Fine vs. Iat Automobile Technology | Porton Fine vs. Shenzhen AV Display Co | Porton Fine vs. Pengxin International Mining | Porton Fine vs. Telling Telecommunication Holding |
| Shanghai Yanpu vs. Guangdong Shenglu Telecommunication | Shanghai Yanpu vs. Suzhou Industrial Park | Shanghai Yanpu vs. Allwin Telecommunication Co | Shanghai Yanpu vs. Sunwave Communications Co |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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