Correlation Between Shanghai Yanpu and Nanjing Putian
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By analyzing existing cross correlation between Shanghai Yanpu Metal and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Shanghai Yanpu and Nanjing Putian 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 Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and Nanjing Putian.
Diversification Opportunities for Shanghai Yanpu and Nanjing Putian
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shanghai and Nanjing is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal and Nanjing Putian Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Putian 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 Nanjing Putian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Putian Telec has no effect on the direction of Shanghai Yanpu i.e., Shanghai Yanpu and Nanjing Putian go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and Nanjing Putian
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to generate 0.35 times more return on investment than Nanjing Putian. However, Shanghai Yanpu Metal is 2.89 times less risky than Nanjing Putian. It trades about 0.04 of its potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about -0.04 per unit of risk. If you would invest 3,718 in Shanghai Yanpu Metal on October 25, 2024 and sell it today you would earn a total of 34.00 from holding Shanghai Yanpu Metal or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yanpu Metal vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Shanghai Yanpu Metal |
| Nanjing Putian Telec |
Shanghai Yanpu and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yanpu and Nanjing Putian
The main advantage of trading using opposite Shanghai Yanpu and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu position performs unexpectedly, Nanjing Putian 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 Nanjing Putian will offset losses from the drop in Nanjing Putian's long position.| Shanghai Yanpu vs. Aluminum Corp of | Shanghai Yanpu vs. Chahua Modern Housewares | Shanghai Yanpu vs. Dawning Information Industry | Shanghai Yanpu vs. State Grid InformationCommunication |
| Nanjing Putian vs. Kweichow Moutai Co | Nanjing Putian vs. NAURA Technology Group | Nanjing Putian vs. APT Medical | Nanjing Putian vs. BYD Co Ltd |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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