Correlation Between Shanghai Yanpu and Ningbo Jintian
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By analyzing existing cross correlation between Shanghai Yanpu Metal and Ningbo Jintian Copper, you can compare the effects of market volatilities on Shanghai Yanpu and Ningbo Jintian 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 Ningbo Jintian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and Ningbo Jintian.
Diversification Opportunities for Shanghai Yanpu and Ningbo Jintian
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Ningbo is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal and Ningbo Jintian Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Jintian Copper 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 Ningbo Jintian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Jintian Copper has no effect on the direction of Shanghai Yanpu i.e., Shanghai Yanpu and Ningbo Jintian go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and Ningbo Jintian
Assuming the 90 days trading horizon Shanghai Yanpu is expected to generate 5.91 times less return on investment than Ningbo Jintian. In addition to that, Shanghai Yanpu is 1.21 times more volatile than Ningbo Jintian Copper. It trades about 0.04 of its total potential returns per unit of risk. Ningbo Jintian Copper is currently generating about 0.29 per unit of volatility. If you would invest 572.00 in Ningbo Jintian Copper on November 5, 2024 and sell it today you would earn a total of 37.00 from holding Ningbo Jintian Copper or generate 6.47% 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. Ningbo Jintian Copper
Performance |
| Timeline |
| Shanghai Yanpu Metal |
| Ningbo Jintian Copper |
Shanghai Yanpu and Ningbo Jintian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yanpu and Ningbo Jintian
The main advantage of trading using opposite Shanghai Yanpu and Ningbo Jintian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu position performs unexpectedly, Ningbo Jintian 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 Ningbo Jintian will offset losses from the drop in Ningbo Jintian's long position.| Shanghai Yanpu vs. HUAQIN TECHNOLOGY LTD | Shanghai Yanpu vs. Sharetronic Data Technology | Shanghai Yanpu vs. Jiujiang Shanshui Technology | Shanghai Yanpu vs. Fiberhome Telecommunication Technologies |
| Ningbo Jintian vs. Zijin Mining Group | Ningbo Jintian vs. Wanhua Chemical Group | Ningbo Jintian vs. Baoshan Iron Steel | Ningbo Jintian vs. Shandong Gold Mining |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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