Correlation Between Shanghai Yanpu and Gansu Huangtai
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By analyzing existing cross correlation between Shanghai Yanpu Metal and Gansu Huangtai Wine marketing, you can compare the effects of market volatilities on Shanghai Yanpu and Gansu Huangtai 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 Gansu Huangtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and Gansu Huangtai.
Diversification Opportunities for Shanghai Yanpu and Gansu Huangtai
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Gansu is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal and Gansu Huangtai Wine marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Huangtai Wine 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 Gansu Huangtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Huangtai Wine has no effect on the direction of Shanghai Yanpu i.e., Shanghai Yanpu and Gansu Huangtai go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and Gansu Huangtai
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to generate 0.87 times more return on investment than Gansu Huangtai. However, Shanghai Yanpu Metal is 1.15 times less risky than Gansu Huangtai. It trades about 0.01 of its potential returns per unit of risk. Gansu Huangtai Wine marketing is currently generating about 0.0 per unit of risk. If you would invest 3,684 in Shanghai Yanpu Metal on October 12, 2024 and sell it today you would lose (9.00) from holding Shanghai Yanpu Metal or give up 0.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yanpu Metal vs. Gansu Huangtai Wine marketing
Performance |
| Timeline |
| Shanghai Yanpu Metal |
| Gansu Huangtai Wine |
Shanghai Yanpu and Gansu Huangtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yanpu and Gansu Huangtai
The main advantage of trading using opposite Shanghai Yanpu and Gansu Huangtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu position performs unexpectedly, Gansu Huangtai 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 Gansu Huangtai will offset losses from the drop in Gansu Huangtai's long position.| Shanghai Yanpu vs. Beijing Kingsoft Office | Shanghai Yanpu vs. Fuzhou Rockchip Electronics | Shanghai Yanpu vs. Jinlong Machinery Electronic | Shanghai Yanpu vs. Weihai Honglin Electronic |
| Gansu Huangtai vs. Anhui Tongguan Copper | Gansu Huangtai vs. Qingdao Foods Co | Gansu Huangtai vs. Shanghai Yanpu Metal | Gansu Huangtai vs. Dalian Thermal Power |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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