Correlation Between Shanghai Pudong and Yunnan Chuangxin
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By analyzing existing cross correlation between Shanghai Pudong Development and Yunnan Chuangxin New, you can compare the effects of market volatilities on Shanghai Pudong and Yunnan Chuangxin 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 Shanghai Pudong with a short position of Yunnan Chuangxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Pudong and Yunnan Chuangxin.
Diversification Opportunities for Shanghai Pudong and Yunnan Chuangxin
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shanghai and Yunnan is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Pudong Development and Yunnan Chuangxin New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Chuangxin New and Shanghai Pudong 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 Shanghai Pudong Development are associated (or correlated) with Yunnan Chuangxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Chuangxin New has no effect on the direction of Shanghai Pudong i.e., Shanghai Pudong and Yunnan Chuangxin go up and down completely randomly.
Pair Corralation between Shanghai Pudong and Yunnan Chuangxin
Assuming the 90 days trading horizon Shanghai Pudong Development is expected to generate 0.85 times more return on investment than Yunnan Chuangxin. However, Shanghai Pudong Development is 1.17 times less risky than Yunnan Chuangxin. It trades about 0.18 of its potential returns per unit of risk. Yunnan Chuangxin New is currently generating about -0.59 per unit of risk. If you would invest 966.00 in Shanghai Pudong Development on October 14, 2024 and sell it today you would earn a total of 47.00 from holding Shanghai Pudong Development or generate 4.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Pudong Development vs. Yunnan Chuangxin New
Performance |
| Timeline |
| Shanghai Pudong Deve |
| Yunnan Chuangxin New |
Shanghai Pudong and Yunnan Chuangxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Pudong and Yunnan Chuangxin
The main advantage of trading using opposite Shanghai Pudong and Yunnan Chuangxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Pudong position performs unexpectedly, Yunnan Chuangxin 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 Yunnan Chuangxin will offset losses from the drop in Yunnan Chuangxin's long position.| Shanghai Pudong vs. Zhejiang Publishing Media | Shanghai Pudong vs. Chengtun Mining Group | Shanghai Pudong vs. Jiangsu Phoenix Publishing | Shanghai Pudong vs. Qingdao Choho Industrial |
| Yunnan Chuangxin vs. Pengxin International Mining | Yunnan Chuangxin vs. Zhengzhou Coal Mining | Yunnan Chuangxin vs. Xinhua Winshare Publishing | Yunnan Chuangxin vs. Changjiang Publishing Media |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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