Correlation Between Shanghai Yanpu and Jizhong Energy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Yanpu Metal and Jizhong Energy Resources, you can compare the effects of market volatilities on Shanghai Yanpu and Jizhong Energy 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 Jizhong Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and Jizhong Energy.
Diversification Opportunities for Shanghai Yanpu and Jizhong Energy
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shanghai and Jizhong is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal and Jizhong Energy Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jizhong Energy Resources 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 Jizhong Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jizhong Energy Resources has no effect on the direction of Shanghai Yanpu i.e., Shanghai Yanpu and Jizhong Energy go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and Jizhong Energy
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to generate 1.15 times more return on investment than Jizhong Energy. However, Shanghai Yanpu is 1.15 times more volatile than Jizhong Energy Resources. It trades about -0.02 of its potential returns per unit of risk. Jizhong Energy Resources is currently generating about -0.24 per unit of risk. If you would invest 3,715 in Shanghai Yanpu Metal on October 29, 2024 and sell it today you would lose (28.00) from holding Shanghai Yanpu Metal or give up 0.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yanpu Metal vs. Jizhong Energy Resources
Performance |
| Timeline |
| Shanghai Yanpu Metal |
| Jizhong Energy Resources |
Shanghai Yanpu and Jizhong Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yanpu and Jizhong Energy
The main advantage of trading using opposite Shanghai Yanpu and Jizhong Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu position performs unexpectedly, Jizhong Energy 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 Jizhong Energy will offset losses from the drop in Jizhong Energy's long position.| Shanghai Yanpu vs. Guangzhou Haozhi Industrial | Shanghai Yanpu vs. Guangdong Jingyi Metal | Shanghai Yanpu vs. China Asset Management | Shanghai Yanpu vs. Vanfund Urban Investment |
| Jizhong Energy vs. Tsingtao Brewery Co | Jizhong Energy vs. Easyhome New Retail | Jizhong Energy vs. Ningbo Kangqiang Electronics | Jizhong Energy vs. Sihui Fuji Electronics |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |