Correlation Between Weihai Honglin and Shanghai Yanpu
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By analyzing existing cross correlation between Weihai Honglin Electronic and Shanghai Yanpu Metal, you can compare the effects of market volatilities on Weihai Honglin 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 Weihai Honglin with a short position of Shanghai Yanpu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weihai Honglin and Shanghai Yanpu.
Diversification Opportunities for Weihai Honglin and Shanghai Yanpu
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Weihai and Shanghai is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Weihai Honglin Electronic 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 Weihai Honglin 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 Weihai Honglin Electronic 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 Weihai Honglin i.e., Weihai Honglin and Shanghai Yanpu go up and down completely randomly.
Pair Corralation between Weihai Honglin and Shanghai Yanpu
Assuming the 90 days trading horizon Weihai Honglin Electronic is expected to generate 1.01 times more return on investment than Shanghai Yanpu. However, Weihai Honglin is 1.01 times more volatile than Shanghai Yanpu Metal. It trades about 0.05 of its potential returns per unit of risk. Shanghai Yanpu Metal is currently generating about -0.04 per unit of risk. If you would invest 1,434 in Weihai Honglin Electronic on October 12, 2024 and sell it today you would earn a total of 61.00 from holding Weihai Honglin Electronic or generate 4.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weihai Honglin Electronic vs. Shanghai Yanpu Metal
Performance |
| Timeline |
| Weihai Honglin Electronic |
| Shanghai Yanpu Metal |
Weihai Honglin and Shanghai Yanpu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weihai Honglin and Shanghai Yanpu
The main advantage of trading using opposite Weihai Honglin and Shanghai Yanpu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weihai Honglin 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.| Weihai Honglin vs. Guangdong Xiongsu Technology | Weihai Honglin vs. Anhui Huaren Health | Weihai Honglin vs. Guangzhou KingTeller Technology | Weihai Honglin vs. Sinofibers Technology Co |
| Shanghai Yanpu vs. Beijing Kingsoft Office | Shanghai Yanpu vs. Fuzhou Rockchip Electronics | Shanghai Yanpu vs. Jinlong Machinery Electronic | Shanghai Yanpu vs. Weihai Honglin Electronic |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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