Correlation Between Shanghai Yanpu and HUANLEJIA Food
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By analyzing existing cross correlation between Shanghai Yanpu Metal and HUANLEJIA Food Group, you can compare the effects of market volatilities on Shanghai Yanpu and HUANLEJIA Food 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 HUANLEJIA Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and HUANLEJIA Food.
Diversification Opportunities for Shanghai Yanpu and HUANLEJIA Food
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and HUANLEJIA is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal and HUANLEJIA Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUANLEJIA Food Group 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 HUANLEJIA Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUANLEJIA Food Group has no effect on the direction of Shanghai Yanpu i.e., Shanghai Yanpu and HUANLEJIA Food go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and HUANLEJIA Food
Assuming the 90 days trading horizon Shanghai Yanpu is expected to generate 4.76 times less return on investment than HUANLEJIA Food. But when comparing it to its historical volatility, Shanghai Yanpu Metal is 2.03 times less risky than HUANLEJIA Food. It trades about 0.07 of its potential returns per unit of risk. HUANLEJIA Food Group is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,205 in HUANLEJIA Food Group on September 13, 2024 and sell it today you would earn a total of 539.00 from holding HUANLEJIA Food Group or generate 44.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yanpu Metal vs. HUANLEJIA Food Group
Performance |
| Timeline |
| Shanghai Yanpu Metal |
| HUANLEJIA Food Group |
Shanghai Yanpu and HUANLEJIA Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yanpu and HUANLEJIA Food
The main advantage of trading using opposite Shanghai Yanpu and HUANLEJIA Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu position performs unexpectedly, HUANLEJIA Food 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 HUANLEJIA Food will offset losses from the drop in HUANLEJIA Food's long position.| Shanghai Yanpu vs. BeiGene | Shanghai Yanpu vs. Kweichow Moutai Co | Shanghai Yanpu vs. Beijing Roborock Technology | Shanghai Yanpu vs. G bits Network Technology |
| HUANLEJIA Food vs. Zhejiang JIULI Hi tech | HUANLEJIA Food vs. Shanghai Yanpu Metal | HUANLEJIA Food vs. Tongling Nonferrous Metals | HUANLEJIA Food vs. Guangdong Jingyi Metal |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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