Correlation Between Shanghai Yanpu and Tianjin LVYIN
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By analyzing existing cross correlation between Shanghai Yanpu Metal and Tianjin LVYIN Landscape, you can compare the effects of market volatilities on Shanghai Yanpu and Tianjin LVYIN 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 Tianjin LVYIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and Tianjin LVYIN.
Diversification Opportunities for Shanghai Yanpu and Tianjin LVYIN
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Tianjin is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal and Tianjin LVYIN Landscape in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin LVYIN Landscape 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 Tianjin LVYIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin LVYIN Landscape has no effect on the direction of Shanghai Yanpu i.e., Shanghai Yanpu and Tianjin LVYIN go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and Tianjin LVYIN
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to generate 0.66 times more return on investment than Tianjin LVYIN. However, Shanghai Yanpu Metal is 1.5 times less risky than Tianjin LVYIN. It trades about -0.01 of its potential returns per unit of risk. Tianjin LVYIN Landscape is currently generating about -0.03 per unit of risk. If you would invest 3,691 in Shanghai Yanpu Metal on September 25, 2024 and sell it today you would lose (37.00) from holding Shanghai Yanpu Metal or give up 1.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Shanghai Yanpu Metal vs. Tianjin LVYIN Landscape
Performance |
| Timeline |
| Shanghai Yanpu Metal |
| Tianjin LVYIN Landscape |
Shanghai Yanpu and Tianjin LVYIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yanpu and Tianjin LVYIN
The main advantage of trading using opposite Shanghai Yanpu and Tianjin LVYIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu position performs unexpectedly, Tianjin LVYIN 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 Tianjin LVYIN will offset losses from the drop in Tianjin LVYIN's long position.| Shanghai Yanpu vs. China Life Insurance | Shanghai Yanpu vs. Cinda Securities Co | Shanghai Yanpu vs. Piotech Inc A | Shanghai Yanpu vs. Dongxing Sec Co |
| Tianjin LVYIN vs. Ming Yang Smart | Tianjin LVYIN vs. 159681 | Tianjin LVYIN vs. 159005 | Tianjin LVYIN vs. Loctek Ergonomic Technology |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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