Correlation Between Shanghai Yanpu and Shanghai Huayi
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By analyzing existing cross correlation between Shanghai Yanpu Metal and Shanghai Huayi Group, you can compare the effects of market volatilities on Shanghai Yanpu and Shanghai Huayi 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 Shanghai Huayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and Shanghai Huayi.
Diversification Opportunities for Shanghai Yanpu and Shanghai Huayi
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Shanghai is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal and Shanghai Huayi Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Huayi Group 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 Shanghai Huayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Huayi Group has no effect on the direction of Shanghai Yanpu i.e., Shanghai Yanpu and Shanghai Huayi go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and Shanghai Huayi
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to generate 1.95 times more return on investment than Shanghai Huayi. However, Shanghai Yanpu is 1.95 times more volatile than Shanghai Huayi Group. It trades about 0.08 of its potential returns per unit of risk. Shanghai Huayi Group is currently generating about 0.11 per unit of risk. If you would invest 3,767 in Shanghai Yanpu Metal on September 4, 2024 and sell it today you would earn a total of 169.00 from holding Shanghai Yanpu Metal or generate 4.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Shanghai Yanpu Metal vs. Shanghai Huayi Group
Performance |
| Timeline |
| Shanghai Yanpu Metal |
| Shanghai Huayi Group |
Shanghai Yanpu and Shanghai Huayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yanpu and Shanghai Huayi
The main advantage of trading using opposite Shanghai Yanpu and Shanghai Huayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu position performs unexpectedly, Shanghai Huayi 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 Shanghai Huayi will offset losses from the drop in Shanghai Huayi's long position.| Shanghai Yanpu vs. Dhc Software Co | Shanghai Yanpu vs. Inspur Software Co | Shanghai Yanpu vs. Keda Clean Energy | Shanghai Yanpu vs. Glodon Software Co |
| Shanghai Huayi vs. Rising Nonferrous Metals | Shanghai Huayi vs. Shanghai Yanpu Metal | Shanghai Huayi vs. Jiangsu GDK Biotechnology | Shanghai Huayi vs. Wuhan Hvsen Biotechnology |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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