Correlation Between Shenyang Chemical and Kuang Chi
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By analyzing existing cross correlation between Shenyang Chemical Industry and Kuang Chi Technologies, you can compare the effects of market volatilities on Shenyang Chemical and Kuang Chi 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 Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Chemical and Kuang Chi.
Diversification Opportunities for Shenyang Chemical and Kuang Chi
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenyang and Kuang is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Chemical Industry and Kuang Chi Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuang Chi Technologies 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 Kuang Chi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuang Chi Technologies has no effect on the direction of Shenyang Chemical i.e., Shenyang Chemical and Kuang Chi go up and down completely randomly.
Pair Corralation between Shenyang Chemical and Kuang Chi
Assuming the 90 days trading horizon Shenyang Chemical Industry is expected to under-perform the Kuang Chi. But the stock apears to be less risky and, when comparing its historical volatility, Shenyang Chemical Industry is 1.16 times less risky than Kuang Chi. The stock trades about -0.02 of its potential returns per unit of risk. The Kuang Chi Technologies is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,811 in Kuang Chi Technologies on October 16, 2024 and sell it today you would earn a total of 2,234 from holding Kuang Chi Technologies or generate 123.36% 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. Kuang Chi Technologies
Performance |
| Timeline |
| Shenyang Chemical |
| Kuang Chi Technologies |
Shenyang Chemical and Kuang Chi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Chemical and Kuang Chi
The main advantage of trading using opposite Shenyang Chemical and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Chemical position performs unexpectedly, Kuang Chi 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 Kuang Chi will offset losses from the drop in Kuang Chi's long position.| Shenyang Chemical vs. Luyin Investment Group | Shenyang Chemical vs. Chengdu Xingrong Investment | Shenyang Chemical vs. Nuode Investment Co | Shenyang Chemical vs. Western Metal Materials |
| Kuang Chi vs. China World Trade | Kuang Chi vs. XiaMen HongXin Electron tech | Kuang Chi vs. Sharetronic Data Technology | Kuang Chi vs. China Eastern Airlines |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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