Correlation Between Dalian Thermal and Shanghai Jinfeng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dalian Thermal Power and Shanghai Jinfeng Wine, you can compare the effects of market volatilities on Dalian Thermal and Shanghai Jinfeng 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 Dalian Thermal with a short position of Shanghai Jinfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalian Thermal and Shanghai Jinfeng.
Diversification Opportunities for Dalian Thermal and Shanghai Jinfeng
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dalian and Shanghai is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Dalian Thermal Power and Shanghai Jinfeng Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jinfeng Wine and Dalian Thermal 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 Dalian Thermal Power are associated (or correlated) with Shanghai Jinfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jinfeng Wine has no effect on the direction of Dalian Thermal i.e., Dalian Thermal and Shanghai Jinfeng go up and down completely randomly.
Pair Corralation between Dalian Thermal and Shanghai Jinfeng
Assuming the 90 days trading horizon Dalian Thermal Power is expected to under-perform the Shanghai Jinfeng. But the stock apears to be less risky and, when comparing its historical volatility, Dalian Thermal Power is 1.2 times less risky than Shanghai Jinfeng. The stock trades about -0.21 of its potential returns per unit of risk. The Shanghai Jinfeng Wine is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 610.00 in Shanghai Jinfeng Wine on November 3, 2024 and sell it today you would lose (89.00) from holding Shanghai Jinfeng Wine or give up 14.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dalian Thermal Power vs. Shanghai Jinfeng Wine
Performance |
| Timeline |
| Dalian Thermal Power |
| Shanghai Jinfeng Wine |
Dalian Thermal and Shanghai Jinfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dalian Thermal and Shanghai Jinfeng
The main advantage of trading using opposite Dalian Thermal and Shanghai Jinfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalian Thermal position performs unexpectedly, Shanghai Jinfeng 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 Jinfeng will offset losses from the drop in Shanghai Jinfeng's long position.| Dalian Thermal vs. Bsm Chemical Co | Dalian Thermal vs. Lier Chemical Co | Dalian Thermal vs. Dazhong Transportation Group | Dalian Thermal vs. Shenzhen Noposion Agrochemicals |
| Shanghai Jinfeng vs. Jiangsu GDK Biotechnology | Shanghai Jinfeng vs. Chengdu Xingrong Investment | Shanghai Jinfeng vs. Sichuan Hebang Biotechnology | Shanghai Jinfeng vs. Nuode Investment Co |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |