Correlation Between Shanghai Yanpu and Tongyu Communication
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By analyzing existing cross correlation between Shanghai Yanpu Metal and Tongyu Communication, you can compare the effects of market volatilities on Shanghai Yanpu and Tongyu Communication 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 Tongyu Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and Tongyu Communication.
Diversification Opportunities for Shanghai Yanpu and Tongyu Communication
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Tongyu is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal and Tongyu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongyu Communication 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 Tongyu Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongyu Communication has no effect on the direction of Shanghai Yanpu i.e., Shanghai Yanpu and Tongyu Communication go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and Tongyu Communication
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to generate 0.74 times more return on investment than Tongyu Communication. However, Shanghai Yanpu Metal is 1.35 times less risky than Tongyu Communication. It trades about 0.27 of its potential returns per unit of risk. Tongyu Communication is currently generating about 0.07 per unit of risk. If you would invest 3,402 in Shanghai Yanpu Metal on September 18, 2024 and sell it today you would earn a total of 578.00 from holding Shanghai Yanpu Metal or generate 16.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yanpu Metal vs. Tongyu Communication
Performance |
| Timeline |
| Shanghai Yanpu Metal |
| Tongyu Communication |
Shanghai Yanpu and Tongyu Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yanpu and Tongyu Communication
The main advantage of trading using opposite Shanghai Yanpu and Tongyu Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu position performs unexpectedly, Tongyu Communication 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 Tongyu Communication will offset losses from the drop in Tongyu Communication's long position.| Shanghai Yanpu vs. BeiGene | Shanghai Yanpu vs. Kweichow Moutai Co | Shanghai Yanpu vs. Beijing Roborock Technology | Shanghai Yanpu vs. G bits Network Technology |
| Tongyu Communication vs. Industrial and Commercial | Tongyu Communication vs. China Construction Bank | Tongyu Communication vs. Bank of China | Tongyu Communication vs. Agricultural Bank of |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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