Correlation Between Shanghai Lingyun and Sinosteel Engineering
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By analyzing existing cross correlation between Shanghai Lingyun Industries and Sinosteel Engineering and, you can compare the effects of market volatilities on Shanghai Lingyun and Sinosteel Engineering 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 Lingyun with a short position of Sinosteel Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Lingyun and Sinosteel Engineering.
Diversification Opportunities for Shanghai Lingyun and Sinosteel Engineering
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Sinosteel is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Lingyun Industries and Sinosteel Engineering and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinosteel Engineering and and Shanghai Lingyun 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 Lingyun Industries are associated (or correlated) with Sinosteel Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinosteel Engineering and has no effect on the direction of Shanghai Lingyun i.e., Shanghai Lingyun and Sinosteel Engineering go up and down completely randomly.
Pair Corralation between Shanghai Lingyun and Sinosteel Engineering
Assuming the 90 days trading horizon Shanghai Lingyun Industries is expected to under-perform the Sinosteel Engineering. In addition to that, Shanghai Lingyun is 2.1 times more volatile than Sinosteel Engineering and. It trades about -0.08 of its total potential returns per unit of risk. Sinosteel Engineering and is currently generating about 0.14 per unit of volatility. If you would invest 647.00 in Sinosteel Engineering and on August 30, 2024 and sell it today you would earn a total of 41.00 from holding Sinosteel Engineering and or generate 6.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Lingyun Industries vs. Sinosteel Engineering and
Performance |
| Timeline |
| Shanghai Lingyun Ind |
| Sinosteel Engineering and |
Shanghai Lingyun and Sinosteel Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Lingyun and Sinosteel Engineering
The main advantage of trading using opposite Shanghai Lingyun and Sinosteel Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Lingyun position performs unexpectedly, Sinosteel Engineering 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 Sinosteel Engineering will offset losses from the drop in Sinosteel Engineering's long position.| Shanghai Lingyun vs. Sinosteel Engineering and | Shanghai Lingyun vs. Jiangxi JDL Environmental | Shanghai Lingyun vs. Guangdong Liantai Environmental | Shanghai Lingyun vs. Tianjin Capital Environmental |
| Sinosteel Engineering vs. Shenzhen MTC Co | Sinosteel Engineering vs. Ming Yang Smart | Sinosteel Engineering vs. Changzhou Almaden Co | Sinosteel Engineering vs. 159681 |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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