Correlation Between Shanghai Yanpu and Porton Fine
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By analyzing existing cross correlation between Shanghai Yanpu Metal and Porton Fine Chemicals, you can compare the effects of market volatilities on Shanghai Yanpu and Porton Fine 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 Porton Fine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and Porton Fine.
Diversification Opportunities for Shanghai Yanpu and Porton Fine
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shanghai and Porton is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal and Porton Fine Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Porton Fine Chemicals 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 Porton Fine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Porton Fine Chemicals has no effect on the direction of Shanghai Yanpu i.e., Shanghai Yanpu and Porton Fine go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and Porton Fine
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to generate 0.88 times more return on investment than Porton Fine. However, Shanghai Yanpu Metal is 1.14 times less risky than Porton Fine. It trades about 0.01 of its potential returns per unit of risk. Porton Fine Chemicals is currently generating about -0.05 per unit of risk. If you would invest 3,751 in Shanghai Yanpu Metal on October 29, 2024 and sell it today you would lose (124.00) from holding Shanghai Yanpu Metal or give up 3.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yanpu Metal vs. Porton Fine Chemicals
Performance |
| Timeline |
| Shanghai Yanpu Metal |
| Porton Fine Chemicals |
Shanghai Yanpu and Porton Fine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yanpu and Porton Fine
The main advantage of trading using opposite Shanghai Yanpu and Porton Fine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu position performs unexpectedly, Porton Fine 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 Porton Fine will offset losses from the drop in Porton Fine's long position.| Shanghai Yanpu vs. Guangzhou Haozhi Industrial | Shanghai Yanpu vs. Guangdong Jingyi Metal | Shanghai Yanpu vs. China Asset Management | Shanghai Yanpu vs. Vanfund Urban Investment |
| Porton Fine vs. Shaanxi Meineng Clean | Porton Fine vs. Bank of Communications | Porton Fine vs. Hainan Airlines Co | Porton Fine vs. Jiangsu Xinri E Vehicle |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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