Correlation Between Shanghai Yanpu and Zhongtong Guomai
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By analyzing existing cross correlation between Shanghai Yanpu Metal and Zhongtong Guomai Communication, you can compare the effects of market volatilities on Shanghai Yanpu and Zhongtong Guomai 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 Zhongtong Guomai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and Zhongtong Guomai.
Diversification Opportunities for Shanghai Yanpu and Zhongtong Guomai
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Zhongtong is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal and Zhongtong Guomai Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtong Guomai Com 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 Zhongtong Guomai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtong Guomai Com has no effect on the direction of Shanghai Yanpu i.e., Shanghai Yanpu and Zhongtong Guomai go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and Zhongtong Guomai
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to generate 0.88 times more return on investment than Zhongtong Guomai. However, Shanghai Yanpu Metal is 1.14 times less risky than Zhongtong Guomai. It trades about 0.27 of its potential returns per unit of risk. Zhongtong Guomai Communication is currently generating about -0.31 per unit of risk. If you would invest 3,402 in Shanghai Yanpu Metal on September 18, 2024 and sell it today you would earn a total of 578.00 from holding Shanghai Yanpu Metal or generate 16.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yanpu Metal vs. Zhongtong Guomai Communication
Performance |
| Timeline |
| Shanghai Yanpu Metal |
| Zhongtong Guomai Com |
Shanghai Yanpu and Zhongtong Guomai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yanpu and Zhongtong Guomai
The main advantage of trading using opposite Shanghai Yanpu and Zhongtong Guomai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu position performs unexpectedly, Zhongtong Guomai 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 Zhongtong Guomai will offset losses from the drop in Zhongtong Guomai's long position.| Shanghai Yanpu vs. BeiGene | Shanghai Yanpu vs. Kweichow Moutai Co | Shanghai Yanpu vs. Beijing Roborock Technology | Shanghai Yanpu vs. G bits Network Technology |
| Zhongtong Guomai vs. China Petroleum Chemical | Zhongtong Guomai vs. PetroChina Co Ltd | Zhongtong Guomai vs. China State Construction | Zhongtong Guomai vs. China Railway Group |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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