Correlation Between Shanghai Yanpu and Guangdong Brandmax
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Yanpu Metal and Guangdong Brandmax Marketing, you can compare the effects of market volatilities on Shanghai Yanpu and Guangdong Brandmax 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 Guangdong Brandmax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and Guangdong Brandmax.
Diversification Opportunities for Shanghai Yanpu and Guangdong Brandmax
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Guangdong is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal and Guangdong Brandmax Marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Brandmax 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 Guangdong Brandmax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Brandmax has no effect on the direction of Shanghai Yanpu i.e., Shanghai Yanpu and Guangdong Brandmax go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and Guangdong Brandmax
Assuming the 90 days trading horizon Shanghai Yanpu is expected to generate 1.08 times less return on investment than Guangdong Brandmax. But when comparing it to its historical volatility, Shanghai Yanpu Metal is 1.39 times less risky than Guangdong Brandmax. It trades about 0.05 of its potential returns per unit of risk. Guangdong Brandmax Marketing is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 825.00 in Guangdong Brandmax Marketing on September 12, 2024 and sell it today you would earn a total of 191.00 from holding Guangdong Brandmax Marketing or generate 23.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yanpu Metal vs. Guangdong Brandmax Marketing
Performance |
| Timeline |
| Shanghai Yanpu Metal |
| Guangdong Brandmax |
Shanghai Yanpu and Guangdong Brandmax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yanpu and Guangdong Brandmax
The main advantage of trading using opposite Shanghai Yanpu and Guangdong Brandmax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu position performs unexpectedly, Guangdong Brandmax 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 Guangdong Brandmax will offset losses from the drop in Guangdong Brandmax's long position.| Shanghai Yanpu vs. Lutian Machinery Co | Shanghai Yanpu vs. PetroChina Co Ltd | Shanghai Yanpu vs. Bank of China | Shanghai Yanpu vs. Gansu Jiu Steel |
| Guangdong Brandmax vs. Kweichow Moutai Co | Guangdong Brandmax vs. Shenzhen Mindray Bio Medical | Guangdong Brandmax vs. G bits Network Technology | Guangdong Brandmax vs. Beijing Roborock 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.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |