Correlation Between Shanghai Yanpu and Hubei Yingtong
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By analyzing existing cross correlation between Shanghai Yanpu Metal and Hubei Yingtong Telecommunication, you can compare the effects of market volatilities on Shanghai Yanpu and Hubei Yingtong 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 Hubei Yingtong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and Hubei Yingtong.
Diversification Opportunities for Shanghai Yanpu and Hubei Yingtong
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Hubei is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal and Hubei Yingtong Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Yingtong Telec 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 Hubei Yingtong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Yingtong Telec has no effect on the direction of Shanghai Yanpu i.e., Shanghai Yanpu and Hubei Yingtong go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and Hubei Yingtong
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to generate 0.74 times more return on investment than Hubei Yingtong. However, Shanghai Yanpu Metal is 1.36 times less risky than Hubei Yingtong. It trades about 0.27 of its potential returns per unit of risk. Hubei Yingtong Telecommunication is currently generating about 0.14 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 | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Shanghai Yanpu Metal vs. Hubei Yingtong Telecommunicati
Performance |
| Timeline |
| Shanghai Yanpu Metal |
| Hubei Yingtong Telec |
Shanghai Yanpu and Hubei Yingtong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yanpu and Hubei Yingtong
The main advantage of trading using opposite Shanghai Yanpu and Hubei Yingtong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu position performs unexpectedly, Hubei Yingtong 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 Hubei Yingtong will offset losses from the drop in Hubei Yingtong'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 |
| Hubei Yingtong vs. Industrial and Commercial | Hubei Yingtong vs. China Construction Bank | Hubei Yingtong vs. Bank of China | Hubei Yingtong 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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