Correlation Between Tibet Huayu and Shanghai Yanpu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tibet Huayu Mining and Shanghai Yanpu Metal, you can compare the effects of market volatilities on Tibet Huayu 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 Tibet Huayu with a short position of Shanghai Yanpu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tibet Huayu and Shanghai Yanpu.
Diversification Opportunities for Tibet Huayu and Shanghai Yanpu
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tibet and Shanghai is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Tibet Huayu Mining 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 Tibet Huayu 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 Tibet Huayu Mining 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 Tibet Huayu i.e., Tibet Huayu and Shanghai Yanpu go up and down completely randomly.
Pair Corralation between Tibet Huayu and Shanghai Yanpu
Assuming the 90 days trading horizon Tibet Huayu Mining is expected to generate 1.42 times more return on investment than Shanghai Yanpu. However, Tibet Huayu is 1.42 times more volatile than Shanghai Yanpu Metal. It trades about 0.1 of its potential returns per unit of risk. Shanghai Yanpu Metal is currently generating about 0.12 per unit of risk. If you would invest 1,333 in Tibet Huayu Mining on September 1, 2024 and sell it today you would earn a total of 106.00 from holding Tibet Huayu Mining or generate 7.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tibet Huayu Mining vs. Shanghai Yanpu Metal
Performance |
| Timeline |
| Tibet Huayu Mining |
| Shanghai Yanpu Metal |
Tibet Huayu and Shanghai Yanpu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tibet Huayu and Shanghai Yanpu
The main advantage of trading using opposite Tibet Huayu and Shanghai Yanpu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tibet Huayu 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.| Tibet Huayu vs. Zijin Mining Group | Tibet Huayu vs. Wanhua Chemical Group | Tibet Huayu vs. Baoshan Iron Steel | Tibet Huayu vs. Shandong Gold Mining |
| Shanghai Yanpu vs. BYD Co Ltd | Shanghai Yanpu vs. China Mobile Limited | Shanghai Yanpu vs. Agricultural Bank of | Shanghai Yanpu vs. Industrial and Commercial |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stocks Directory Find actively traded stocks across global markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |