Correlation Between Shanghai Yanpu and China Aluminum
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By analyzing existing cross correlation between Shanghai Yanpu Metal and China Aluminum International, you can compare the effects of market volatilities on Shanghai Yanpu and China Aluminum 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 China Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and China Aluminum.
Diversification Opportunities for Shanghai Yanpu and China Aluminum
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shanghai and China is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal and China Aluminum International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Aluminum Inter 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 China Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Aluminum Inter has no effect on the direction of Shanghai Yanpu i.e., Shanghai Yanpu and China Aluminum go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and China Aluminum
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to generate 1.17 times more return on investment than China Aluminum. However, Shanghai Yanpu is 1.17 times more volatile than China Aluminum International. It trades about 0.13 of its potential returns per unit of risk. China Aluminum International is currently generating about 0.05 per unit of risk. If you would invest 2,640 in Shanghai Yanpu Metal on November 2, 2024 and sell it today you would earn a total of 987.00 from holding Shanghai Yanpu Metal or generate 37.39% 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. China Aluminum International
Performance |
| Timeline |
| Shanghai Yanpu Metal |
| China Aluminum Inter |
Shanghai Yanpu and China Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yanpu and China Aluminum
The main advantage of trading using opposite Shanghai Yanpu and China Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu position performs unexpectedly, China Aluminum 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 China Aluminum will offset losses from the drop in China Aluminum's long position.| Shanghai Yanpu vs. Sublime China Information | Shanghai Yanpu vs. Invengo Information Technology | Shanghai Yanpu vs. Uroica Mining Safety | Shanghai Yanpu vs. Zijin Mining Group |
| China Aluminum vs. Pinlive Foods Co | China Aluminum vs. Xiwang Foodstuffs Co | China Aluminum vs. Shantou Wanshun Package | China Aluminum vs. Gan Yuan Foods |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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