Correlation Between Hualan Group and Shanghai Yanpu
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By analyzing existing cross correlation between Hualan Group Co and Shanghai Yanpu Metal, you can compare the effects of market volatilities on Hualan Group 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 Hualan Group with a short position of Shanghai Yanpu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hualan Group and Shanghai Yanpu.
Diversification Opportunities for Hualan Group and Shanghai Yanpu
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hualan and Shanghai is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Hualan Group Co 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 Hualan Group 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 Hualan Group Co 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 Hualan Group i.e., Hualan Group and Shanghai Yanpu go up and down completely randomly.
Pair Corralation between Hualan Group and Shanghai Yanpu
Assuming the 90 days trading horizon Hualan Group Co is expected to generate 0.92 times more return on investment than Shanghai Yanpu. However, Hualan Group Co is 1.08 times less risky than Shanghai Yanpu. It trades about 0.15 of its potential returns per unit of risk. Shanghai Yanpu Metal is currently generating about 0.03 per unit of risk. If you would invest 1,338 in Hualan Group Co on September 13, 2024 and sell it today you would earn a total of 129.00 from holding Hualan Group Co or generate 9.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hualan Group Co vs. Shanghai Yanpu Metal
Performance |
| Timeline |
| Hualan Group |
| Shanghai Yanpu Metal |
Hualan Group and Shanghai Yanpu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hualan Group and Shanghai Yanpu
The main advantage of trading using opposite Hualan Group and Shanghai Yanpu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hualan Group 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.| Hualan Group vs. Ming Yang Smart | Hualan Group vs. 159681 | Hualan Group vs. 159005 | Hualan Group vs. Loctek Ergonomic Technology |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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