Correlation Between Shenyang Chemical and Wuxi Chemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenyang Chemical Industry and Wuxi Chemical Equipment, you can compare the effects of market volatilities on Shenyang Chemical and Wuxi Chemical 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 Wuxi Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Chemical and Wuxi Chemical.
Diversification Opportunities for Shenyang Chemical and Wuxi Chemical
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenyang and Wuxi is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Chemical Industry and Wuxi Chemical Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuxi Chemical Equipment 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 Wuxi Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuxi Chemical Equipment has no effect on the direction of Shenyang Chemical i.e., Shenyang Chemical and Wuxi Chemical go up and down completely randomly.
Pair Corralation between Shenyang Chemical and Wuxi Chemical
Assuming the 90 days trading horizon Shenyang Chemical Industry is expected to under-perform the Wuxi Chemical. But the stock apears to be less risky and, when comparing its historical volatility, Shenyang Chemical Industry is 1.01 times less risky than Wuxi Chemical. The stock trades about -0.02 of its potential returns per unit of risk. The Wuxi Chemical Equipment is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 4,337 in Wuxi Chemical Equipment on October 18, 2024 and sell it today you would lose (877.00) from holding Wuxi Chemical Equipment or give up 20.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Chemical Industry vs. Wuxi Chemical Equipment
Performance |
| Timeline |
| Shenyang Chemical |
| Wuxi Chemical Equipment |
Shenyang Chemical and Wuxi Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Chemical and Wuxi Chemical
The main advantage of trading using opposite Shenyang Chemical and Wuxi Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Chemical position performs unexpectedly, Wuxi Chemical 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 Wuxi Chemical will offset losses from the drop in Wuxi Chemical's long position.| Shenyang Chemical vs. Eastroc Beverage Group | Shenyang Chemical vs. Impulse Qingdao Health | Shenyang Chemical vs. Offshore Oil Engineering | Shenyang Chemical vs. Jiangsu Yanghe Brewery |
| Wuxi Chemical vs. Linewell Software Co | Wuxi Chemical vs. Digiwin Software Co | Wuxi Chemical vs. Innovative Medical Management | Wuxi Chemical vs. Eyebright Medical 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |