Correlation Between Shanghai Yanpu and Jiangxi Naipu
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By analyzing existing cross correlation between Shanghai Yanpu Metal and Jiangxi Naipu Mining, you can compare the effects of market volatilities on Shanghai Yanpu and Jiangxi Naipu 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 Jiangxi Naipu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and Jiangxi Naipu.
Diversification Opportunities for Shanghai Yanpu and Jiangxi Naipu
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shanghai and Jiangxi is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal and Jiangxi Naipu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Naipu Mining 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 Jiangxi Naipu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Naipu Mining has no effect on the direction of Shanghai Yanpu i.e., Shanghai Yanpu and Jiangxi Naipu go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and Jiangxi Naipu
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to generate 0.84 times more return on investment than Jiangxi Naipu. However, Shanghai Yanpu Metal is 1.2 times less risky than Jiangxi Naipu. It trades about -0.02 of its potential returns per unit of risk. Jiangxi Naipu Mining is currently generating about -0.15 per unit of risk. If you would invest 3,715 in Shanghai Yanpu Metal on October 29, 2024 and sell it today you would lose (28.00) from holding Shanghai Yanpu Metal or give up 0.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yanpu Metal vs. Jiangxi Naipu Mining
Performance |
| Timeline |
| Shanghai Yanpu Metal |
| Jiangxi Naipu Mining |
Shanghai Yanpu and Jiangxi Naipu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yanpu and Jiangxi Naipu
The main advantage of trading using opposite Shanghai Yanpu and Jiangxi Naipu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu position performs unexpectedly, Jiangxi Naipu 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 Jiangxi Naipu will offset losses from the drop in Jiangxi Naipu'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 |
| Jiangxi Naipu vs. Chinese Universe Publishing | Jiangxi Naipu vs. Offcn Education Technology | Jiangxi Naipu vs. Zhejiang Publishing Media | Jiangxi Naipu vs. Silkroad Visual 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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