Correlation Between Shanghai Yanpu and Changchun High
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By analyzing existing cross correlation between Shanghai Yanpu Metal and Changchun High New, you can compare the effects of market volatilities on Shanghai Yanpu and Changchun High 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 Shanghai Yanpu with a short position of Changchun High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and Changchun High.
Diversification Opportunities for Shanghai Yanpu and Changchun High
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Changchun is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal and Changchun High New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun High New and Shanghai Yanpu 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 Shanghai Yanpu Metal are associated (or correlated) with Changchun High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun High New has no effect on the direction of Shanghai Yanpu i.e., Shanghai Yanpu and Changchun High go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and Changchun High
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to generate 1.3 times more return on investment than Changchun High. However, Shanghai Yanpu is 1.3 times more volatile than Changchun High New. It trades about 0.01 of its potential returns per unit of risk. Changchun High New is currently generating about -0.05 per unit of risk. If you would invest 3,694 in Shanghai Yanpu Metal on August 28, 2024 and sell it today you would lose (3.00) from holding Shanghai Yanpu Metal or give up 0.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yanpu Metal vs. Changchun High New
Performance |
| Timeline |
| Shanghai Yanpu Metal |
| Changchun High New |
Shanghai Yanpu and Changchun High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yanpu and Changchun High
The main advantage of trading using opposite Shanghai Yanpu and Changchun High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu position performs unexpectedly, Changchun High 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 Changchun High will offset losses from the drop in Changchun High's long position.| Shanghai Yanpu vs. Loongson Technology Corp | Shanghai Yanpu vs. Chongqing Road Bridge | Shanghai Yanpu vs. Shenzhen Fortune Trend | Shanghai Yanpu vs. Wuhan Xianglong Power |
| Changchun High vs. Hengkang Medical Group | Changchun High vs. GKHT Medical Technology | Changchun High vs. Sunwave Communications Co | Changchun High vs. Ningbo Ligong Online |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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