Correlation Between Shenyang Chemical and Chengdu Xingrong
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By analyzing existing cross correlation between Shenyang Chemical Industry and Chengdu Xingrong Investment, you can compare the effects of market volatilities on Shenyang Chemical and Chengdu Xingrong 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 Chengdu Xingrong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Chemical and Chengdu Xingrong.
Diversification Opportunities for Shenyang Chemical and Chengdu Xingrong
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenyang and Chengdu is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Chemical Industry and Chengdu Xingrong Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xingrong Inv 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 Chengdu Xingrong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xingrong Inv has no effect on the direction of Shenyang Chemical i.e., Shenyang Chemical and Chengdu Xingrong go up and down completely randomly.
Pair Corralation between Shenyang Chemical and Chengdu Xingrong
Assuming the 90 days trading horizon Shenyang Chemical Industry is expected to generate 1.88 times more return on investment than Chengdu Xingrong. However, Shenyang Chemical is 1.88 times more volatile than Chengdu Xingrong Investment. It trades about 0.2 of its potential returns per unit of risk. Chengdu Xingrong Investment is currently generating about -0.08 per unit of risk. If you would invest 335.00 in Shenyang Chemical Industry on September 4, 2024 and sell it today you would earn a total of 49.00 from holding Shenyang Chemical Industry or generate 14.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Chemical Industry vs. Chengdu Xingrong Investment
Performance |
| Timeline |
| Shenyang Chemical |
| Chengdu Xingrong Inv |
Shenyang Chemical and Chengdu Xingrong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Chemical and Chengdu Xingrong
The main advantage of trading using opposite Shenyang Chemical and Chengdu Xingrong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Chemical position performs unexpectedly, Chengdu Xingrong 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 Chengdu Xingrong will offset losses from the drop in Chengdu Xingrong'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 |
| Chengdu Xingrong vs. Wuxi Chemical Equipment | Chengdu Xingrong vs. Guangzhou Haige Communications | Chengdu Xingrong vs. CICT Mobile Communication | Chengdu Xingrong vs. Shenyang Chemical Industry |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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