Correlation Between Shenyang Chemical and Guangzhou Jointas
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By analyzing existing cross correlation between Shenyang Chemical Industry and Guangzhou Jointas Chemical, you can compare the effects of market volatilities on Shenyang Chemical and Guangzhou Jointas 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 Guangzhou Jointas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Chemical and Guangzhou Jointas.
Diversification Opportunities for Shenyang Chemical and Guangzhou Jointas
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenyang and Guangzhou is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Chemical Industry and Guangzhou Jointas Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jointas 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 Guangzhou Jointas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jointas has no effect on the direction of Shenyang Chemical i.e., Shenyang Chemical and Guangzhou Jointas go up and down completely randomly.
Pair Corralation between Shenyang Chemical and Guangzhou Jointas
Assuming the 90 days trading horizon Shenyang Chemical is expected to generate 1.77 times less return on investment than Guangzhou Jointas. But when comparing it to its historical volatility, Shenyang Chemical Industry is 1.01 times less risky than Guangzhou Jointas. It trades about 0.1 of its potential returns per unit of risk. Guangzhou Jointas Chemical is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 511.00 in Guangzhou Jointas Chemical on August 27, 2024 and sell it today you would earn a total of 57.00 from holding Guangzhou Jointas Chemical or generate 11.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Chemical Industry vs. Guangzhou Jointas Chemical
Performance |
| Timeline |
| Shenyang Chemical |
| Guangzhou Jointas |
Shenyang Chemical and Guangzhou Jointas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Chemical and Guangzhou Jointas
The main advantage of trading using opposite Shenyang Chemical and Guangzhou Jointas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Chemical position performs unexpectedly, Guangzhou Jointas 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 Guangzhou Jointas will offset losses from the drop in Guangzhou Jointas' long position.| Shenyang Chemical vs. Shanghai Yanpu Metal | Shenyang Chemical vs. China Aluminum International | Shenyang Chemical vs. Cicc Fund Management | Shenyang Chemical vs. Guangdong Jingyi Metal |
| Guangzhou Jointas vs. Zijin Mining Group | Guangzhou Jointas vs. Baoshan Iron Steel | Guangzhou Jointas vs. Shandong Gold Mining | Guangzhou Jointas vs. Rongsheng Petrochemical 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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