Correlation Between China Asset and Shanghai Yanpu
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Asset Management and Shanghai Yanpu Metal, you can compare the effects of market volatilities on China Asset 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 China Asset with a short position of Shanghai Yanpu. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Shanghai Yanpu.
Diversification Opportunities for China Asset and Shanghai Yanpu
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between China and Shanghai is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management 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 China Asset 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 China Asset Management 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 China Asset i.e., China Asset and Shanghai Yanpu go up and down completely randomly.
Pair Corralation between China Asset and Shanghai Yanpu
Assuming the 90 days trading horizon China Asset Management is expected to generate 0.74 times more return on investment than Shanghai Yanpu. However, China Asset Management is 1.36 times less risky than Shanghai Yanpu. It trades about 0.44 of its potential returns per unit of risk. Shanghai Yanpu Metal is currently generating about -0.07 per unit of risk. If you would invest 359.00 in China Asset Management on October 29, 2024 and sell it today you would earn a total of 37.00 from holding China Asset Management or generate 10.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. Shanghai Yanpu Metal
Performance |
| Timeline |
| China Asset Management |
| Shanghai Yanpu Metal |
China Asset and Shanghai Yanpu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and Shanghai Yanpu
The main advantage of trading using opposite China Asset and Shanghai Yanpu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset 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.| China Asset vs. Dhc Software Co | China Asset vs. Chongqing Changan Automobile | China Asset vs. Linewell Software Co | China Asset vs. Shenzhen Topway Video |
| Shanghai Yanpu vs. Guangzhou Haozhi Industrial | Shanghai Yanpu vs. Guangdong Jingyi Metal | Shanghai Yanpu vs. China Asset Management | Shanghai Yanpu vs. Vanfund Urban Investment |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Global Correlations Find global opportunities by holding instruments from different markets |