Correlation Between Ziel Home and Shanghai Yanpu
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By analyzing existing cross correlation between Ziel Home Furnishing and Shanghai Yanpu Metal, you can compare the effects of market volatilities on Ziel Home 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 Ziel Home with a short position of Shanghai Yanpu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ziel Home and Shanghai Yanpu.
Diversification Opportunities for Ziel Home and Shanghai Yanpu
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ziel and Shanghai is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Ziel Home Furnishing 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 Ziel Home 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 Ziel Home Furnishing 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 Ziel Home i.e., Ziel Home and Shanghai Yanpu go up and down completely randomly.
Pair Corralation between Ziel Home and Shanghai Yanpu
Assuming the 90 days trading horizon Ziel Home is expected to generate 1.92 times less return on investment than Shanghai Yanpu. In addition to that, Ziel Home 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 0.13 per unit of volatility. If you would invest 2,640 in Shanghai Yanpu Metal on November 2, 2024 and sell it today you would earn a total of 987.00 from holding Shanghai Yanpu Metal or generate 37.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ziel Home Furnishing vs. Shanghai Yanpu Metal
Performance |
| Timeline |
| Ziel Home Furnishing |
| Shanghai Yanpu Metal |
Ziel Home and Shanghai Yanpu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ziel Home and Shanghai Yanpu
The main advantage of trading using opposite Ziel Home and Shanghai Yanpu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ziel Home 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.| Ziel Home vs. De Rucci Healthy | Ziel Home vs. Meinian Onehealth Healthcare | Ziel Home vs. Heilongjiang Transport Development | Ziel Home vs. Zhejiang Yongjin Metal |
| Shanghai Yanpu vs. Sublime China Information | Shanghai Yanpu vs. Invengo Information Technology | Shanghai Yanpu vs. Uroica Mining Safety | Shanghai Yanpu vs. Zijin Mining Group |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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