Correlation Between Yangmei Chemical and Shanghai Metersbonwe
Specify exactly 2 symbols:
By analyzing existing cross correlation between Yangmei Chemical Co and Shanghai Metersbonwe FashionAccessories, you can compare the effects of market volatilities on Yangmei Chemical and Shanghai Metersbonwe 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 Yangmei Chemical with a short position of Shanghai Metersbonwe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yangmei Chemical and Shanghai Metersbonwe.
Diversification Opportunities for Yangmei Chemical and Shanghai Metersbonwe
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yangmei and Shanghai is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Yangmei Chemical Co and Shanghai Metersbonwe FashionAc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Metersbonwe and Yangmei Chemical 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 Yangmei Chemical Co are associated (or correlated) with Shanghai Metersbonwe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Metersbonwe has no effect on the direction of Yangmei Chemical i.e., Yangmei Chemical and Shanghai Metersbonwe go up and down completely randomly.
Pair Corralation between Yangmei Chemical and Shanghai Metersbonwe
Assuming the 90 days trading horizon Yangmei Chemical is expected to generate 2.14 times less return on investment than Shanghai Metersbonwe. But when comparing it to its historical volatility, Yangmei Chemical Co is 1.64 times less risky than Shanghai Metersbonwe. It trades about 0.21 of its potential returns per unit of risk. Shanghai Metersbonwe FashionAccessories is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 195.00 in Shanghai Metersbonwe FashionAccessories on September 13, 2024 and sell it today you would earn a total of 69.00 from holding Shanghai Metersbonwe FashionAccessories or generate 35.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yangmei Chemical Co vs. Shanghai Metersbonwe FashionAc
Performance |
| Timeline |
| Yangmei Chemical |
| Shanghai Metersbonwe |
Yangmei Chemical and Shanghai Metersbonwe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yangmei Chemical and Shanghai Metersbonwe
The main advantage of trading using opposite Yangmei Chemical and Shanghai Metersbonwe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yangmei Chemical position performs unexpectedly, Shanghai Metersbonwe 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 Metersbonwe will offset losses from the drop in Shanghai Metersbonwe's long position.| Yangmei Chemical vs. Tianjin Pengling Rubber | Yangmei Chemical vs. King Strong New Material | Yangmei Chemical vs. Panda Financial Holding | Yangmei Chemical vs. Bank of Suzhou |
| Shanghai Metersbonwe vs. Industrial and Commercial | Shanghai Metersbonwe vs. Agricultural Bank of | Shanghai Metersbonwe vs. China Construction Bank | Shanghai Metersbonwe vs. Bank of China |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |