Correlation Between Shanghai Yanpu and Ningbo Fujia
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Yanpu Metal and Ningbo Fujia Industrial, you can compare the effects of market volatilities on Shanghai Yanpu and Ningbo Fujia 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 Fujia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and Ningbo Fujia.
Diversification Opportunities for Shanghai Yanpu and Ningbo Fujia
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shanghai and Ningbo is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal and Ningbo Fujia Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Fujia Industrial 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 Fujia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Fujia Industrial has no effect on the direction of Shanghai Yanpu i.e., Shanghai Yanpu and Ningbo Fujia go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and Ningbo Fujia
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to under-perform the Ningbo Fujia. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Yanpu Metal is 1.78 times less risky than Ningbo Fujia. The stock trades about -0.15 of its potential returns per unit of risk. The Ningbo Fujia Industrial is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,458 in Ningbo Fujia Industrial on October 12, 2024 and sell it today you would lose (10.00) from holding Ningbo Fujia Industrial or give up 0.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yanpu Metal vs. Ningbo Fujia Industrial
Performance |
| Timeline |
| Shanghai Yanpu Metal |
| Ningbo Fujia Industrial |
Shanghai Yanpu and Ningbo Fujia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yanpu and Ningbo Fujia
The main advantage of trading using opposite Shanghai Yanpu and Ningbo Fujia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu position performs unexpectedly, Ningbo Fujia 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 Fujia will offset losses from the drop in Ningbo Fujia's long position.| Shanghai Yanpu vs. Beijing Kingsoft Office | Shanghai Yanpu vs. Fuzhou Rockchip Electronics | Shanghai Yanpu vs. Jinlong Machinery Electronic | Shanghai Yanpu vs. Weihai Honglin Electronic |
| Ningbo Fujia vs. Shanghai Yaoji Playing | Ningbo Fujia vs. Huaxia Fund Management | Ningbo Fujia vs. JCHX Mining Management | Ningbo Fujia vs. CSSC Offshore Marine |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Global Correlations Find global opportunities by holding instruments from different markets |