Correlation Between Shanghai Yanpu and Dalian Thermal
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Yanpu Metal and Dalian Thermal Power, you can compare the effects of market volatilities on Shanghai Yanpu and Dalian Thermal 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 Dalian Thermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and Dalian Thermal.
Diversification Opportunities for Shanghai Yanpu and Dalian Thermal
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Dalian is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal and Dalian Thermal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalian Thermal Power 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 Dalian Thermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalian Thermal Power has no effect on the direction of Shanghai Yanpu i.e., Shanghai Yanpu and Dalian Thermal go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and Dalian Thermal
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to generate 0.45 times more return on investment than Dalian Thermal. However, Shanghai Yanpu Metal is 2.22 times less risky than Dalian Thermal. It trades about 0.15 of its potential returns per unit of risk. Dalian Thermal Power is currently generating about -0.14 per unit of risk. If you would invest 3,654 in Shanghai Yanpu Metal on October 22, 2024 and sell it today you would earn a total of 150.00 from holding Shanghai Yanpu Metal or generate 4.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yanpu Metal vs. Dalian Thermal Power
Performance |
| Timeline |
| Shanghai Yanpu Metal |
| Dalian Thermal Power |
Shanghai Yanpu and Dalian Thermal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yanpu and Dalian Thermal
The main advantage of trading using opposite Shanghai Yanpu and Dalian Thermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu position performs unexpectedly, Dalian Thermal 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 Dalian Thermal will offset losses from the drop in Dalian Thermal's long position.| Shanghai Yanpu vs. Montage Technology Co | Shanghai Yanpu vs. Giantec Semiconductor Corp | Shanghai Yanpu vs. Will Semiconductor Co | Shanghai Yanpu vs. Semiconductor Manufacturing Intl |
| Dalian Thermal vs. Sino Platinum Metals Co | Dalian Thermal vs. Zhejiang Yongjin Metal | Dalian Thermal vs. Western Metal Materials | Dalian Thermal vs. Rising Nonferrous Metals |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |