Correlation Between Shanghai Yanpu and Long Yuan
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By analyzing existing cross correlation between Shanghai Yanpu Metal and Long Yuan Construction, you can compare the effects of market volatilities on Shanghai Yanpu and Long Yuan 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 Long Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and Long Yuan.
Diversification Opportunities for Shanghai Yanpu and Long Yuan
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shanghai and Long is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal and Long Yuan Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Long Yuan Construction 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 Long Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Long Yuan Construction has no effect on the direction of Shanghai Yanpu i.e., Shanghai Yanpu and Long Yuan go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and Long Yuan
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to generate 1.07 times more return on investment than Long Yuan. However, Shanghai Yanpu is 1.07 times more volatile than Long Yuan Construction. It trades about 0.02 of its potential returns per unit of risk. Long Yuan Construction is currently generating about -0.02 per unit of risk. If you would invest 3,455 in Shanghai Yanpu Metal on November 19, 2024 and sell it today you would earn a total of 375.00 from holding Shanghai Yanpu Metal or generate 10.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yanpu Metal vs. Long Yuan Construction
Performance |
| Timeline |
| Shanghai Yanpu Metal |
| Long Yuan Construction |
Shanghai Yanpu and Long Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yanpu and Long Yuan
The main advantage of trading using opposite Shanghai Yanpu and Long Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu position performs unexpectedly, Long Yuan 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 Long Yuan will offset losses from the drop in Long Yuan's long position.| Shanghai Yanpu vs. Citic Guoan Wine | Shanghai Yanpu vs. Southchip Semiconductor Technology | Shanghai Yanpu vs. Chongqing Shunbo Aluminum | Shanghai Yanpu vs. Kuaijishan Shaoxing Rice |
| Long Yuan vs. Shanghai Rongtai Health | Long Yuan vs. Winner Medical Co | Long Yuan vs. Dezhan HealthCare Co | Long Yuan vs. By health |
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 Stocks Directory module to find actively traded stocks across global markets.
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