Correlation Between Shenyang Chemical and Shenzhen Shenbao
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By analyzing existing cross correlation between Shenyang Chemical Industry and Shenzhen Shenbao Industrial, you can compare the effects of market volatilities on Shenyang Chemical and Shenzhen Shenbao 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 Shenyang Chemical with a short position of Shenzhen Shenbao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Chemical and Shenzhen Shenbao.
Diversification Opportunities for Shenyang Chemical and Shenzhen Shenbao
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenyang and Shenzhen is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Chemical Industry and Shenzhen Shenbao Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Shenbao Ind and Shenyang 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 Shenyang Chemical Industry are associated (or correlated) with Shenzhen Shenbao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Shenbao Ind has no effect on the direction of Shenyang Chemical i.e., Shenyang Chemical and Shenzhen Shenbao go up and down completely randomly.
Pair Corralation between Shenyang Chemical and Shenzhen Shenbao
Assuming the 90 days trading horizon Shenyang Chemical Industry is expected to under-perform the Shenzhen Shenbao. In addition to that, Shenyang Chemical is 1.64 times more volatile than Shenzhen Shenbao Industrial. It trades about 0.0 of its total potential returns per unit of risk. Shenzhen Shenbao Industrial is currently generating about 0.01 per unit of volatility. If you would invest 723.00 in Shenzhen Shenbao Industrial on September 2, 2024 and sell it today you would lose (4.00) from holding Shenzhen Shenbao Industrial or give up 0.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Chemical Industry vs. Shenzhen Shenbao Industrial
Performance |
| Timeline |
| Shenyang Chemical |
| Shenzhen Shenbao Ind |
Shenyang Chemical and Shenzhen Shenbao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Chemical and Shenzhen Shenbao
The main advantage of trading using opposite Shenyang Chemical and Shenzhen Shenbao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Chemical position performs unexpectedly, Shenzhen Shenbao 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 Shenbao will offset losses from the drop in Shenzhen Shenbao's long position.| Shenyang Chemical vs. Zijin Mining Group | Shenyang Chemical vs. Wanhua Chemical Group | Shenyang Chemical vs. Baoshan Iron Steel | Shenyang Chemical vs. Shandong Gold Mining |
| Shenzhen Shenbao vs. Ming Yang Smart | Shenzhen Shenbao vs. 159681 | Shenzhen Shenbao vs. 159005 | Shenzhen Shenbao vs. Loctek Ergonomic Technology |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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