Correlation Between Shenyang Chemical and Shanghai Phichem
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenyang Chemical Industry and Shanghai Phichem Material, you can compare the effects of market volatilities on Shenyang Chemical and Shanghai Phichem 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 Shanghai Phichem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Chemical and Shanghai Phichem.
Diversification Opportunities for Shenyang Chemical and Shanghai Phichem
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenyang and Shanghai is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Chemical Industry and Shanghai Phichem Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Phichem Material 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 Shanghai Phichem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Phichem Material has no effect on the direction of Shenyang Chemical i.e., Shenyang Chemical and Shanghai Phichem go up and down completely randomly.
Pair Corralation between Shenyang Chemical and Shanghai Phichem
Assuming the 90 days trading horizon Shenyang Chemical Industry is expected to under-perform the Shanghai Phichem. But the stock apears to be less risky and, when comparing its historical volatility, Shenyang Chemical Industry is 1.31 times less risky than Shanghai Phichem. The stock trades about -0.02 of its potential returns per unit of risk. The Shanghai Phichem Material is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,787 in Shanghai Phichem Material on October 13, 2024 and sell it today you would lose (329.00) from holding Shanghai Phichem Material or give up 18.41% 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. Shanghai Phichem Material
Performance |
| Timeline |
| Shenyang Chemical |
| Shanghai Phichem Material |
Shenyang Chemical and Shanghai Phichem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Chemical and Shanghai Phichem
The main advantage of trading using opposite Shenyang Chemical and Shanghai Phichem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Chemical position performs unexpectedly, Shanghai Phichem 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 Shanghai Phichem will offset losses from the drop in Shanghai Phichem'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 |
| Shanghai Phichem vs. TianJin 712 Communication | Shanghai Phichem vs. Miracll Chemicals Co | Shanghai Phichem vs. Shenyang Chemical Industry | Shanghai Phichem vs. Guangdong Shenglu Telecommunication |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |