Correlation Between Shanghai Yanpu and DR
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Yanpu Metal and DR Limited, you can compare the effects of market volatilities on Shanghai Yanpu and DR 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 DR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and DR.
Diversification Opportunities for Shanghai Yanpu and DR
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and DR is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal and DR Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DR Limited 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 DR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DR Limited has no effect on the direction of Shanghai Yanpu i.e., Shanghai Yanpu and DR go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and DR
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to generate 1.03 times more return on investment than DR. However, Shanghai Yanpu is 1.03 times more volatile than DR Limited. It trades about 0.02 of its potential returns per unit of risk. DR Limited is currently generating about -0.04 per unit of risk. If you would invest 3,555 in Shanghai Yanpu Metal on September 12, 2024 and sell it today you would earn a total of 332.00 from holding Shanghai Yanpu Metal or generate 9.34% 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. DR Limited
Performance |
| Timeline |
| Shanghai Yanpu Metal |
| DR Limited |
Shanghai Yanpu and DR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yanpu and DR
The main advantage of trading using opposite Shanghai Yanpu and DR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu position performs unexpectedly, DR 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 DR will offset losses from the drop in DR'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 |
| DR vs. Hangzhou Pinming Software | DR vs. Tianshan Aluminum Group | DR vs. Shanghai Yanpu Metal | DR vs. Hefei Metalforming Mach |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |