Correlation Between Shanghai Yanpu and Zhejiang Huatong
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By analyzing existing cross correlation between Shanghai Yanpu Metal and Zhejiang Huatong Meat, you can compare the effects of market volatilities on Shanghai Yanpu and Zhejiang Huatong 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 Zhejiang Huatong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and Zhejiang Huatong.
Diversification Opportunities for Shanghai Yanpu and Zhejiang Huatong
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Zhejiang is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal and Zhejiang Huatong Meat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Huatong Meat 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 Zhejiang Huatong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Huatong Meat has no effect on the direction of Shanghai Yanpu i.e., Shanghai Yanpu and Zhejiang Huatong go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and Zhejiang Huatong
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to generate 0.87 times more return on investment than Zhejiang Huatong. However, Shanghai Yanpu Metal is 1.15 times less risky than Zhejiang Huatong. It trades about 0.17 of its potential returns per unit of risk. Zhejiang Huatong Meat is currently generating about 0.11 per unit of risk. If you would invest 2,716 in Shanghai Yanpu Metal on September 25, 2024 and sell it today you would earn a total of 938.00 from holding Shanghai Yanpu Metal or generate 34.54% 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. Zhejiang Huatong Meat
Performance |
Timeline |
Shanghai Yanpu Metal |
Zhejiang Huatong Meat |
Shanghai Yanpu and Zhejiang Huatong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shanghai Yanpu and Zhejiang Huatong
The main advantage of trading using opposite Shanghai Yanpu and Zhejiang Huatong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu position performs unexpectedly, Zhejiang Huatong 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 Zhejiang Huatong will offset losses from the drop in Zhejiang Huatong's long position.Shanghai Yanpu vs. China Life Insurance | Shanghai Yanpu vs. Cinda Securities Co | Shanghai Yanpu vs. Piotech Inc A | Shanghai Yanpu vs. Dongxing Sec Co |
Zhejiang Huatong vs. Chongqing Shunbo Aluminum | Zhejiang Huatong vs. China Aluminum International | Zhejiang Huatong vs. Sportsoul Co Ltd | Zhejiang Huatong vs. Sino Platinum Metals 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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