Correlation Between Shanghai Yanpu and Xinya Electronic
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By analyzing existing cross correlation between Shanghai Yanpu Metal and Xinya Electronic Co, you can compare the effects of market volatilities on Shanghai Yanpu and Xinya Electronic 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 Xinya Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and Xinya Electronic.
Diversification Opportunities for Shanghai Yanpu and Xinya Electronic
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Xinya is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal and Xinya Electronic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinya Electronic 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 Xinya Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinya Electronic has no effect on the direction of Shanghai Yanpu i.e., Shanghai Yanpu and Xinya Electronic go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and Xinya Electronic
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to generate 1.15 times more return on investment than Xinya Electronic. However, Shanghai Yanpu is 1.15 times more volatile than Xinya Electronic Co. It trades about 0.18 of its potential returns per unit of risk. Xinya Electronic Co is currently generating about 0.18 per unit of risk. If you would invest 2,630 in Shanghai Yanpu Metal on September 24, 2024 and sell it today you would earn a total of 1,024 from holding Shanghai Yanpu Metal or generate 38.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 98.36% |
Values | Daily Returns |
Shanghai Yanpu Metal vs. Xinya Electronic Co
Performance |
Timeline |
Shanghai Yanpu Metal |
Xinya Electronic |
Shanghai Yanpu and Xinya Electronic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shanghai Yanpu and Xinya Electronic
The main advantage of trading using opposite Shanghai Yanpu and Xinya Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu position performs unexpectedly, Xinya Electronic 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 Xinya Electronic will offset losses from the drop in Xinya Electronic'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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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