Correlation Between Rising Nonferrous and Shanghai Yanpu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Rising Nonferrous Metals and Shanghai Yanpu Metal, you can compare the effects of market volatilities on Rising Nonferrous 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 Rising Nonferrous with a short position of Shanghai Yanpu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Shanghai Yanpu.
Diversification Opportunities for Rising Nonferrous and Shanghai Yanpu
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Rising and Shanghai is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals 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 Rising Nonferrous 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 Rising Nonferrous Metals 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 Rising Nonferrous i.e., Rising Nonferrous and Shanghai Yanpu go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Shanghai Yanpu
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to under-perform the Shanghai Yanpu. But the stock apears to be less risky and, when comparing its historical volatility, Rising Nonferrous Metals is 1.31 times less risky than Shanghai Yanpu. The stock trades about -0.01 of its potential returns per unit of risk. The Shanghai Yanpu Metal is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,828 in Shanghai Yanpu Metal on September 12, 2024 and sell it today you would earn a total of 1,059 from holding Shanghai Yanpu Metal or generate 37.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. Shanghai Yanpu Metal
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Shanghai Yanpu Metal |
Rising Nonferrous and Shanghai Yanpu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Shanghai Yanpu
The main advantage of trading using opposite Rising Nonferrous and Shanghai Yanpu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous 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.| Rising Nonferrous vs. Zijin Mining Group | Rising Nonferrous vs. Wanhua Chemical Group | Rising Nonferrous vs. Baoshan Iron Steel | Rising Nonferrous vs. Rongsheng Petrochemical Co |
| Shanghai Yanpu vs. Lutian Machinery Co | Shanghai Yanpu vs. PetroChina Co Ltd | Shanghai Yanpu vs. Bank of China | Shanghai Yanpu vs. Gansu Jiu Steel |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |