Correlation Between Shenyang Chemical and Jiangsu Yanghe
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By analyzing existing cross correlation between Shenyang Chemical Industry and Jiangsu Yanghe Brewery, you can compare the effects of market volatilities on Shenyang Chemical and Jiangsu Yanghe 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 Jiangsu Yanghe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Chemical and Jiangsu Yanghe.
Diversification Opportunities for Shenyang Chemical and Jiangsu Yanghe
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shenyang and Jiangsu is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Chemical Industry and Jiangsu Yanghe Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yanghe Brewery 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 Jiangsu Yanghe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yanghe Brewery has no effect on the direction of Shenyang Chemical i.e., Shenyang Chemical and Jiangsu Yanghe go up and down completely randomly.
Pair Corralation between Shenyang Chemical and Jiangsu Yanghe
Assuming the 90 days trading horizon Shenyang Chemical Industry is expected to under-perform the Jiangsu Yanghe. In addition to that, Shenyang Chemical is 3.69 times more volatile than Jiangsu Yanghe Brewery. It trades about -0.24 of its total potential returns per unit of risk. Jiangsu Yanghe Brewery is currently generating about -0.31 per unit of volatility. If you would invest 8,393 in Jiangsu Yanghe Brewery on October 14, 2024 and sell it today you would lose (561.00) from holding Jiangsu Yanghe Brewery or give up 6.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Chemical Industry vs. Jiangsu Yanghe Brewery
Performance |
| Timeline |
| Shenyang Chemical |
| Jiangsu Yanghe Brewery |
Shenyang Chemical and Jiangsu Yanghe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Chemical and Jiangsu Yanghe
The main advantage of trading using opposite Shenyang Chemical and Jiangsu Yanghe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Chemical position performs unexpectedly, Jiangsu Yanghe 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 Jiangsu Yanghe will offset losses from the drop in Jiangsu Yanghe's long position.| Shenyang Chemical vs. Xingguang Agricultural Mach | Shenyang Chemical vs. Masterwork Machinery | Shenyang Chemical vs. Longjian Road Bridge | Shenyang Chemical vs. Silkroad Visual Technology |
| Jiangsu Yanghe vs. Jiangsu Xinri E Vehicle | Jiangsu Yanghe vs. Shenyang Chemical Industry | Jiangsu Yanghe vs. Zhejiang Qianjiang Motorcycle | Jiangsu Yanghe vs. Changchun Engley Automobile |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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