Correlation Between Cinda Securities and Shanghai Yanpu
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By analyzing existing cross correlation between Cinda Securities Co and Shanghai Yanpu Metal, you can compare the effects of market volatilities on Cinda Securities 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 Cinda Securities with a short position of Shanghai Yanpu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and Shanghai Yanpu.
Diversification Opportunities for Cinda Securities and Shanghai Yanpu
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cinda and Shanghai is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co 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 Cinda Securities 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 Cinda Securities Co 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 Cinda Securities i.e., Cinda Securities and Shanghai Yanpu go up and down completely randomly.
Pair Corralation between Cinda Securities and Shanghai Yanpu
Assuming the 90 days trading horizon Cinda Securities Co is expected to under-perform the Shanghai Yanpu. But the stock apears to be less risky and, when comparing its historical volatility, Cinda Securities Co is 1.02 times less risky than Shanghai Yanpu. The stock trades about -0.08 of its potential returns per unit of risk. The Shanghai Yanpu Metal is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,545 in Shanghai Yanpu Metal on October 14, 2024 and sell it today you would earn a total of 130.00 from holding Shanghai Yanpu Metal or generate 3.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinda Securities Co vs. Shanghai Yanpu Metal
Performance |
| Timeline |
| Cinda Securities |
| Shanghai Yanpu Metal |
Cinda Securities and Shanghai Yanpu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and Shanghai Yanpu
The main advantage of trading using opposite Cinda Securities and Shanghai Yanpu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities 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.| Cinda Securities vs. Zijin Mining Group | Cinda Securities vs. Innovative Medical Management | Cinda Securities vs. Medprin Regenerative Medical | Cinda Securities vs. Shenzhen Silver Basis |
| Shanghai Yanpu vs. Zhejiang Qianjiang Motorcycle | Shanghai Yanpu vs. Linewell Software Co | Shanghai Yanpu vs. Iat Automobile Technology | Shanghai Yanpu vs. Changchun Engley Automobile |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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