Correlation Between Shanghai Yanpu and Yoantion Industrial
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By analyzing existing cross correlation between Shanghai Yanpu Metal and Yoantion Industrial IncLtd, you can compare the effects of market volatilities on Shanghai Yanpu and Yoantion Industrial 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 Yoantion Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and Yoantion Industrial.
Diversification Opportunities for Shanghai Yanpu and Yoantion Industrial
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Yoantion is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal and Yoantion Industrial IncLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yoantion Industrial 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 Yoantion Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yoantion Industrial has no effect on the direction of Shanghai Yanpu i.e., Shanghai Yanpu and Yoantion Industrial go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and Yoantion Industrial
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to generate 0.86 times more return on investment than Yoantion Industrial. However, Shanghai Yanpu Metal is 1.16 times less risky than Yoantion Industrial. It trades about 0.17 of its potential returns per unit of risk. Yoantion Industrial IncLtd is currently generating about 0.06 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 | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Shanghai Yanpu Metal vs. Yoantion Industrial IncLtd
Performance |
Timeline |
Shanghai Yanpu Metal |
Yoantion Industrial |
Shanghai Yanpu and Yoantion Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shanghai Yanpu and Yoantion Industrial
The main advantage of trading using opposite Shanghai Yanpu and Yoantion Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu position performs unexpectedly, Yoantion Industrial 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 Yoantion Industrial will offset losses from the drop in Yoantion Industrial'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 |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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