Correlation Between Shanghai Yanpu and Shandong Hongchuang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Yanpu Metal and Shandong Hongchuang Aluminum, you can compare the effects of market volatilities on Shanghai Yanpu and Shandong Hongchuang 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 Shandong Hongchuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and Shandong Hongchuang.
Diversification Opportunities for Shanghai Yanpu and Shandong Hongchuang
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Shandong is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal and Shandong Hongchuang Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Hongchuang 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 Shandong Hongchuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Hongchuang has no effect on the direction of Shanghai Yanpu i.e., Shanghai Yanpu and Shandong Hongchuang go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and Shandong Hongchuang
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to generate 1.03 times more return on investment than Shandong Hongchuang. However, Shanghai Yanpu is 1.03 times more volatile than Shandong Hongchuang Aluminum. It trades about 0.12 of its potential returns per unit of risk. Shandong Hongchuang Aluminum is currently generating about 0.04 per unit of risk. If you would invest 3,759 in Shanghai Yanpu Metal on September 1, 2024 and sell it today you would earn a total of 279.00 from holding Shanghai Yanpu Metal or generate 7.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yanpu Metal vs. Shandong Hongchuang Aluminum
Performance |
| Timeline |
| Shanghai Yanpu Metal |
| Shandong Hongchuang |
Shanghai Yanpu and Shandong Hongchuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yanpu and Shandong Hongchuang
The main advantage of trading using opposite Shanghai Yanpu and Shandong Hongchuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu position performs unexpectedly, Shandong Hongchuang 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 Shandong Hongchuang will offset losses from the drop in Shandong Hongchuang's long position.| Shanghai Yanpu vs. BYD Co Ltd | Shanghai Yanpu vs. China Mobile Limited | Shanghai Yanpu vs. Agricultural Bank of | Shanghai Yanpu vs. Industrial and Commercial |
| Shandong Hongchuang vs. Dareway Software Co | Shandong Hongchuang vs. Anji Foodstuff Co | Shandong Hongchuang vs. Beijing Yanjing Brewery | Shandong Hongchuang vs. Yankershop Food Co |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |