Correlation Between Zhangjiagang Freetrade and Shanghai Yanpu
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By analyzing existing cross correlation between Zhangjiagang Freetrade Science and Shanghai Yanpu Metal, you can compare the effects of market volatilities on Zhangjiagang Freetrade 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 Zhangjiagang Freetrade with a short position of Shanghai Yanpu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhangjiagang Freetrade and Shanghai Yanpu.
Diversification Opportunities for Zhangjiagang Freetrade and Shanghai Yanpu
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhangjiagang and Shanghai is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Zhangjiagang Freetrade Science 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 Zhangjiagang Freetrade 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 Zhangjiagang Freetrade Science 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 Zhangjiagang Freetrade i.e., Zhangjiagang Freetrade and Shanghai Yanpu go up and down completely randomly.
Pair Corralation between Zhangjiagang Freetrade and Shanghai Yanpu
Assuming the 90 days trading horizon Zhangjiagang Freetrade is expected to generate 5.18 times less return on investment than Shanghai Yanpu. But when comparing it to its historical volatility, Zhangjiagang Freetrade Science is 1.4 times less risky than Shanghai Yanpu. It trades about 0.01 of its potential returns per unit of risk. 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 |
Zhangjiagang Freetrade Science vs. Shanghai Yanpu Metal
Performance |
| Timeline |
| Zhangjiagang Freetrade |
| Shanghai Yanpu Metal |
Zhangjiagang Freetrade and Shanghai Yanpu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhangjiagang Freetrade and Shanghai Yanpu
The main advantage of trading using opposite Zhangjiagang Freetrade and Shanghai Yanpu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhangjiagang Freetrade 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.| Zhangjiagang Freetrade vs. Agricultural Bank of | Zhangjiagang Freetrade vs. Industrial and Commercial | Zhangjiagang Freetrade vs. Bank of China | Zhangjiagang Freetrade vs. PetroChina Co Ltd |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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