Correlation Between Tianjin Silvery and Shanghai Putailai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tianjin Silvery Dragon and Shanghai Putailai New, you can compare the effects of market volatilities on Tianjin Silvery and Shanghai Putailai 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 Tianjin Silvery with a short position of Shanghai Putailai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Silvery and Shanghai Putailai.
Diversification Opportunities for Tianjin Silvery and Shanghai Putailai
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianjin and Shanghai is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Silvery Dragon and Shanghai Putailai New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Putailai New and Tianjin Silvery 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 Tianjin Silvery Dragon are associated (or correlated) with Shanghai Putailai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Putailai New has no effect on the direction of Tianjin Silvery i.e., Tianjin Silvery and Shanghai Putailai go up and down completely randomly.
Pair Corralation between Tianjin Silvery and Shanghai Putailai
Assuming the 90 days trading horizon Tianjin Silvery is expected to generate 1.14 times less return on investment than Shanghai Putailai. But when comparing it to its historical volatility, Tianjin Silvery Dragon is 1.4 times less risky than Shanghai Putailai. It trades about 0.24 of its potential returns per unit of risk. Shanghai Putailai New is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,067 in Shanghai Putailai New on September 23, 2024 and sell it today you would earn a total of 653.00 from holding Shanghai Putailai New or generate 61.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Tianjin Silvery Dragon vs. Shanghai Putailai New
Performance |
Timeline |
Tianjin Silvery Dragon |
Shanghai Putailai New |
Tianjin Silvery and Shanghai Putailai Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tianjin Silvery and Shanghai Putailai
The main advantage of trading using opposite Tianjin Silvery and Shanghai Putailai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Silvery position performs unexpectedly, Shanghai Putailai 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 Putailai will offset losses from the drop in Shanghai Putailai's long position.Tianjin Silvery vs. Wanhua Chemical Group | Tianjin Silvery vs. Baoshan Iron Steel | Tianjin Silvery vs. Shandong Gold Mining | Tianjin Silvery vs. Rongsheng Petrochemical Co |
Shanghai Putailai vs. Zijin Mining Group | Shanghai Putailai vs. Baoshan Iron Steel | Shanghai Putailai vs. Shandong Gold Mining | Shanghai Putailai vs. Rongsheng Petrochemical Co |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |