Correlation Between China International and Shanghai Yanpu
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By analyzing existing cross correlation between China International Capital and Shanghai Yanpu Metal, you can compare the effects of market volatilities on China International 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 China International with a short position of Shanghai Yanpu. Check out your portfolio center. Please also check ongoing floating volatility patterns of China International and Shanghai Yanpu.
Diversification Opportunities for China International and Shanghai Yanpu
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Shanghai is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding China International Capital 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 China International 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 China International Capital 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 China International i.e., China International and Shanghai Yanpu go up and down completely randomly.
Pair Corralation between China International and Shanghai Yanpu
Assuming the 90 days trading horizon China International Capital is expected to under-perform the Shanghai Yanpu. But the stock apears to be less risky and, when comparing its historical volatility, China International Capital is 1.2 times less risky than Shanghai Yanpu. The stock trades about -0.01 of its potential returns per unit of risk. The Shanghai Yanpu Metal is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,800 in Shanghai Yanpu Metal on August 31, 2024 and sell it today you would earn a total of 238.00 from holding Shanghai Yanpu Metal or generate 6.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China International Capital vs. Shanghai Yanpu Metal
Performance |
| Timeline |
| China International |
| Shanghai Yanpu Metal |
China International and Shanghai Yanpu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China International and Shanghai Yanpu
The main advantage of trading using opposite China International and Shanghai Yanpu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China International 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.| China International vs. Innovative Medical Management | China International vs. AVIC Fund Management | China International vs. Humanwell Healthcare Group | China International vs. Anhui Huaren Health |
| Shanghai Yanpu vs. China State Construction | Shanghai Yanpu vs. China Merchants Shekou | Shanghai Yanpu vs. Huafa Industrial Co | Shanghai Yanpu vs. China International Capital |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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