Correlation Between Shanghai Yanpu and State Grid
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By analyzing existing cross correlation between Shanghai Yanpu Metal and State Grid InformationCommunication, you can compare the effects of market volatilities on Shanghai Yanpu and State Grid 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 State Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and State Grid.
Diversification Opportunities for Shanghai Yanpu and State Grid
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and State is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal and State Grid InformationCommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Grid Informati 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 State Grid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Grid Informati has no effect on the direction of Shanghai Yanpu i.e., Shanghai Yanpu and State Grid go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and State Grid
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to generate 1.0 times more return on investment than State Grid. However, Shanghai Yanpu Metal is 1.0 times less risky than State Grid. It trades about -0.09 of its potential returns per unit of risk. State Grid InformationCommunication is currently generating about -0.26 per unit of risk. If you would invest 3,980 in Shanghai Yanpu Metal on October 17, 2024 and sell it today you would lose (160.00) from holding Shanghai Yanpu Metal or give up 4.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yanpu Metal vs. State Grid InformationCommunic
Performance |
| Timeline |
| Shanghai Yanpu Metal |
| State Grid Informati |
Shanghai Yanpu and State Grid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yanpu and State Grid
The main advantage of trading using opposite Shanghai Yanpu and State Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu position performs unexpectedly, State Grid 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 State Grid will offset losses from the drop in State Grid's long position.| Shanghai Yanpu vs. Impulse Qingdao Health | Shanghai Yanpu vs. Caihong Display Devices | Shanghai Yanpu vs. Fiberhome Telecommunication Technologies | Shanghai Yanpu vs. Dezhan HealthCare Co |
| State Grid vs. Anhui Transport Consulting | State Grid vs. China Aluminum International | State Grid vs. Rising Nonferrous Metals | State Grid vs. Shanghai Yanpu 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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