Correlation Between Yingde Greatchem and Shanghai Yaoji
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By analyzing existing cross correlation between Yingde Greatchem Chemicals and Shanghai Yaoji Playing, you can compare the effects of market volatilities on Yingde Greatchem and Shanghai Yaoji 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 Yingde Greatchem with a short position of Shanghai Yaoji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yingde Greatchem and Shanghai Yaoji.
Diversification Opportunities for Yingde Greatchem and Shanghai Yaoji
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yingde and Shanghai is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Yingde Greatchem Chemicals and Shanghai Yaoji Playing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yaoji Playing and Yingde Greatchem 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 Yingde Greatchem Chemicals are associated (or correlated) with Shanghai Yaoji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yaoji Playing has no effect on the direction of Yingde Greatchem i.e., Yingde Greatchem and Shanghai Yaoji go up and down completely randomly.
Pair Corralation between Yingde Greatchem and Shanghai Yaoji
Assuming the 90 days trading horizon Yingde Greatchem is expected to generate 1.72 times less return on investment than Shanghai Yaoji. But when comparing it to its historical volatility, Yingde Greatchem Chemicals is 1.92 times less risky than Shanghai Yaoji. It trades about 0.11 of its potential returns per unit of risk. Shanghai Yaoji Playing is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,628 in Shanghai Yaoji Playing on November 3, 2024 and sell it today you would earn a total of 169.00 from holding Shanghai Yaoji Playing or generate 6.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yingde Greatchem Chemicals vs. Shanghai Yaoji Playing
Performance |
| Timeline |
| Yingde Greatchem Che |
| Shanghai Yaoji Playing |
Yingde Greatchem and Shanghai Yaoji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yingde Greatchem and Shanghai Yaoji
The main advantage of trading using opposite Yingde Greatchem and Shanghai Yaoji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yingde Greatchem position performs unexpectedly, Shanghai Yaoji 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 Yaoji will offset losses from the drop in Shanghai Yaoji's long position.| Yingde Greatchem vs. Zijin Mining Group | Yingde Greatchem vs. Wanhua Chemical Group | Yingde Greatchem vs. Baoshan Iron Steel | Yingde Greatchem vs. Shandong Gold Mining |
| Shanghai Yaoji vs. Eastern Communications Co | Shanghai Yaoji vs. Bomesc Offshore Engineering | Shanghai Yaoji vs. Runjian Communication Co | Shanghai Yaoji vs. Huizhou Speed Wireless |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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