Correlation Between Changchun Engley and Shanghai Yanpu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Changchun Engley Automobile and Shanghai Yanpu Metal, you can compare the effects of market volatilities on Changchun Engley 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 Changchun Engley with a short position of Shanghai Yanpu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun Engley and Shanghai Yanpu.
Diversification Opportunities for Changchun Engley and Shanghai Yanpu
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Changchun and Shanghai is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Changchun Engley Automobile 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 Changchun Engley 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 Changchun Engley Automobile 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 Changchun Engley i.e., Changchun Engley and Shanghai Yanpu go up and down completely randomly.
Pair Corralation between Changchun Engley and Shanghai Yanpu
Assuming the 90 days trading horizon Changchun Engley Automobile is expected to under-perform the Shanghai Yanpu. In addition to that, Changchun Engley is 1.48 times more volatile than Shanghai Yanpu Metal. It trades about -0.3 of its total potential returns per unit of risk. Shanghai Yanpu Metal is currently generating about -0.07 per unit of volatility. If you would invest 3,775 in Shanghai Yanpu Metal on October 28, 2024 and sell it today you would lose (88.00) from holding Shanghai Yanpu Metal or give up 2.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun Engley Automobile vs. Shanghai Yanpu Metal
Performance |
| Timeline |
| Changchun Engley Aut |
| Shanghai Yanpu Metal |
Changchun Engley and Shanghai Yanpu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun Engley and Shanghai Yanpu
The main advantage of trading using opposite Changchun Engley and Shanghai Yanpu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun Engley 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.| Changchun Engley vs. Kweichow Moutai Co | Changchun Engley vs. Jiangsu Pacific Quartz | Changchun Engley vs. Shenzhen Transsion Holdings | Changchun Engley vs. Beijing Roborock Technology |
| Shanghai Yanpu vs. Guangzhou Haozhi Industrial | Shanghai Yanpu vs. Guangdong Jingyi Metal | Shanghai Yanpu vs. China Asset Management | Shanghai Yanpu vs. Vanfund Urban Investment |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |