Correlation Between Sinopec Shanghai and Big Yellow
Can any of the company-specific risk be diversified away by investing in both Sinopec Shanghai and Big Yellow at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sinopec Shanghai and Big Yellow into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sinopec Shanghai Petrochemical and Big Yellow Group, you can compare the effects of market volatilities on Sinopec Shanghai and Big Yellow 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 Sinopec Shanghai with a short position of Big Yellow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinopec Shanghai and Big Yellow.
Diversification Opportunities for Sinopec Shanghai and Big Yellow
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sinopec and Big is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sinopec Shanghai Petrochemical and Big Yellow Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Big Yellow Group and Sinopec Shanghai 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 Sinopec Shanghai Petrochemical are associated (or correlated) with Big Yellow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Big Yellow Group has no effect on the direction of Sinopec Shanghai i.e., Sinopec Shanghai and Big Yellow go up and down completely randomly.
Pair Corralation between Sinopec Shanghai and Big Yellow
If you would invest 15.00 in Sinopec Shanghai Petrochemical on October 27, 2024 and sell it today you would lose (1.00) from holding Sinopec Shanghai Petrochemical or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Sinopec Shanghai Petrochemical vs. Big Yellow Group
Performance |
| Timeline |
| Sinopec Shanghai Pet |
| Big Yellow Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Sinopec Shanghai and Big Yellow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinopec Shanghai and Big Yellow
The main advantage of trading using opposite Sinopec Shanghai and Big Yellow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinopec Shanghai position performs unexpectedly, Big Yellow 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 Big Yellow will offset losses from the drop in Big Yellow's long position.| Sinopec Shanghai vs. Reliance Industries Limited | Sinopec Shanghai vs. Marathon Petroleum Corp | Sinopec Shanghai vs. Valero Energy | Sinopec Shanghai vs. Phillips 66 |
| Big Yellow vs. DATAGROUP SE | Big Yellow vs. China Communications Services | Big Yellow vs. SK TELECOM TDADR | Big Yellow vs. China Datang |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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