Correlation Between Jilin Chemical and Shenzhen MYS
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jilin Chemical Fibre and Shenzhen MYS Environmental, you can compare the effects of market volatilities on Jilin Chemical and Shenzhen MYS 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 Jilin Chemical with a short position of Shenzhen MYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Chemical and Shenzhen MYS.
Diversification Opportunities for Jilin Chemical and Shenzhen MYS
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jilin and Shenzhen is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Chemical Fibre and Shenzhen MYS Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MYS Environ and Jilin Chemical 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 Jilin Chemical Fibre are associated (or correlated) with Shenzhen MYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MYS Environ has no effect on the direction of Jilin Chemical i.e., Jilin Chemical and Shenzhen MYS go up and down completely randomly.
Pair Corralation between Jilin Chemical and Shenzhen MYS
Assuming the 90 days trading horizon Jilin Chemical Fibre is expected to generate 0.6 times more return on investment than Shenzhen MYS. However, Jilin Chemical Fibre is 1.68 times less risky than Shenzhen MYS. It trades about -0.08 of its potential returns per unit of risk. Shenzhen MYS Environmental is currently generating about -0.06 per unit of risk. If you would invest 350.00 in Jilin Chemical Fibre on November 3, 2024 and sell it today you would lose (10.00) from holding Jilin Chemical Fibre or give up 2.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Chemical Fibre vs. Shenzhen MYS Environmental
Performance |
| Timeline |
| Jilin Chemical Fibre |
| Shenzhen MYS Environ |
Jilin Chemical and Shenzhen MYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Chemical and Shenzhen MYS
The main advantage of trading using opposite Jilin Chemical and Shenzhen MYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Chemical position performs unexpectedly, Shenzhen MYS 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 Shenzhen MYS will offset losses from the drop in Shenzhen MYS's long position.| Jilin Chemical vs. Zijin Mining Group | Jilin Chemical vs. Wanhua Chemical Group | Jilin Chemical vs. Baoshan Iron Steel | Jilin Chemical vs. Shandong Gold Mining |
| Shenzhen MYS vs. Zijin Mining Group | Shenzhen MYS vs. Wanhua Chemical Group | Shenzhen MYS vs. Baoshan Iron Steel | Shenzhen MYS vs. Shandong Gold Mining |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |