Correlation Between Shanghai Yanpu and Rising Nonferrous
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By analyzing existing cross correlation between Shanghai Yanpu Metal and Rising Nonferrous Metals, you can compare the effects of market volatilities on Shanghai Yanpu and Rising Nonferrous 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 Rising Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and Rising Nonferrous.
Diversification Opportunities for Shanghai Yanpu and Rising Nonferrous
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Rising is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal and Rising Nonferrous Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rising Nonferrous Metals 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 Rising Nonferrous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rising Nonferrous Metals has no effect on the direction of Shanghai Yanpu i.e., Shanghai Yanpu and Rising Nonferrous go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and Rising Nonferrous
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to generate 1.31 times more return on investment than Rising Nonferrous. However, Shanghai Yanpu is 1.31 times more volatile than Rising Nonferrous Metals. It trades about 0.05 of its potential returns per unit of risk. Rising Nonferrous Metals is currently generating about -0.01 per unit of risk. If you would invest 2,828 in Shanghai Yanpu Metal on September 12, 2024 and sell it today you would earn a total of 1,059 from holding Shanghai Yanpu Metal or generate 37.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yanpu Metal vs. Rising Nonferrous Metals
Performance |
| Timeline |
| Shanghai Yanpu Metal |
| Rising Nonferrous Metals |
Shanghai Yanpu and Rising Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yanpu and Rising Nonferrous
The main advantage of trading using opposite Shanghai Yanpu and Rising Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu position performs unexpectedly, Rising Nonferrous 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 Rising Nonferrous will offset losses from the drop in Rising Nonferrous' 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 |
| Rising Nonferrous vs. Zijin Mining Group | Rising Nonferrous vs. Wanhua Chemical Group | Rising Nonferrous vs. Baoshan Iron Steel | Rising Nonferrous vs. Rongsheng Petrochemical Co |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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