Correlation Between Shenyang Chemical and Shenzhen Noposion
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By analyzing existing cross correlation between Shenyang Chemical Industry and Shenzhen Noposion Agrochemicals, you can compare the effects of market volatilities on Shenyang Chemical and Shenzhen Noposion 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 Noposion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Chemical and Shenzhen Noposion.
Diversification Opportunities for Shenyang Chemical and Shenzhen Noposion
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenyang and Shenzhen is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Chemical Industry and Shenzhen Noposion Agrochemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Noposion 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 Noposion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Noposion has no effect on the direction of Shenyang Chemical i.e., Shenyang Chemical and Shenzhen Noposion go up and down completely randomly.
Pair Corralation between Shenyang Chemical and Shenzhen Noposion
Assuming the 90 days trading horizon Shenyang Chemical Industry is expected to under-perform the Shenzhen Noposion. In addition to that, Shenyang Chemical is 1.21 times more volatile than Shenzhen Noposion Agrochemicals. It trades about -0.23 of its total potential returns per unit of risk. Shenzhen Noposion Agrochemicals is currently generating about -0.11 per unit of volatility. If you would invest 1,130 in Shenzhen Noposion Agrochemicals on October 16, 2024 and sell it today you would lose (92.00) from holding Shenzhen Noposion Agrochemicals or give up 8.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Chemical Industry vs. Shenzhen Noposion Agrochemical
Performance |
| Timeline |
| Shenyang Chemical |
| Shenzhen Noposion |
Shenyang Chemical and Shenzhen Noposion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Chemical and Shenzhen Noposion
The main advantage of trading using opposite Shenyang Chemical and Shenzhen Noposion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Chemical position performs unexpectedly, Shenzhen Noposion 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 Noposion will offset losses from the drop in Shenzhen Noposion's long position.| Shenyang Chemical vs. Zoje Resources Investment | Shenyang Chemical vs. Harbin Hatou Investment | Shenyang Chemical vs. Chengtun Mining Group | Shenyang Chemical vs. Zijin Mining Group |
| Shenzhen Noposion vs. Caihong Display Devices | Shenzhen Noposion vs. Fiberhome Telecommunication Technologies | Shenzhen Noposion vs. Success Electronics | Shenzhen Noposion vs. Aurora Optoelectronics Co |
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 CEOs Directory module to screen CEOs from public companies around the world.
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