Correlation Between Guangdong Transtek and Shanghai Yanpu
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By analyzing existing cross correlation between Guangdong Transtek Medical and Shanghai Yanpu Metal, you can compare the effects of market volatilities on Guangdong Transtek 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 Guangdong Transtek with a short position of Shanghai Yanpu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Transtek and Shanghai Yanpu.
Diversification Opportunities for Guangdong Transtek and Shanghai Yanpu
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guangdong and Shanghai is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Transtek Medical 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 Guangdong Transtek 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 Guangdong Transtek Medical 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 Guangdong Transtek i.e., Guangdong Transtek and Shanghai Yanpu go up and down completely randomly.
Pair Corralation between Guangdong Transtek and Shanghai Yanpu
Assuming the 90 days trading horizon Guangdong Transtek Medical is expected to under-perform the Shanghai Yanpu. In addition to that, Guangdong Transtek is 2.9 times more volatile than Shanghai Yanpu Metal. It trades about -0.05 of its total potential returns per unit of risk. Shanghai Yanpu Metal is currently generating about -0.15 per unit of volatility. If you would invest 4,038 in Shanghai Yanpu Metal on October 30, 2024 and sell it today you would lose (411.00) from holding Shanghai Yanpu Metal or give up 10.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Transtek Medical vs. Shanghai Yanpu Metal
Performance |
| Timeline |
| Guangdong Transtek |
| Shanghai Yanpu Metal |
Guangdong Transtek and Shanghai Yanpu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Transtek and Shanghai Yanpu
The main advantage of trading using opposite Guangdong Transtek and Shanghai Yanpu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Transtek 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.| Guangdong Transtek vs. Agricultural Bank of | Guangdong Transtek vs. Industrial and Commercial | Guangdong Transtek vs. Bank of China | Guangdong Transtek vs. China Construction Bank |
| Shanghai Yanpu vs. Kweichow Moutai Co | Shanghai Yanpu vs. Jiangsu Pacific Quartz | Shanghai Yanpu vs. Shenzhen Transsion Holdings | Shanghai Yanpu vs. Beijing Roborock 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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