Correlation Between Shenyang Chemical and Marssenger Kitchenware
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By analyzing existing cross correlation between Shenyang Chemical Industry and Marssenger Kitchenware Co, you can compare the effects of market volatilities on Shenyang Chemical and Marssenger Kitchenware 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 Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Chemical and Marssenger Kitchenware.
Diversification Opportunities for Shenyang Chemical and Marssenger Kitchenware
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenyang and Marssenger is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Chemical Industry and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware 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 Marssenger Kitchenware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marssenger Kitchenware has no effect on the direction of Shenyang Chemical i.e., Shenyang Chemical and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between Shenyang Chemical and Marssenger Kitchenware
Assuming the 90 days trading horizon Shenyang Chemical Industry is expected to generate 1.04 times more return on investment than Marssenger Kitchenware. However, Shenyang Chemical is 1.04 times more volatile than Marssenger Kitchenware Co. It trades about 0.13 of its potential returns per unit of risk. Marssenger Kitchenware Co is currently generating about 0.1 per unit of risk. If you would invest 341.00 in Shenyang Chemical Industry on August 31, 2024 and sell it today you would earn a total of 32.00 from holding Shenyang Chemical Industry or generate 9.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Chemical Industry vs. Marssenger Kitchenware Co
Performance |
| Timeline |
| Shenyang Chemical |
| Marssenger Kitchenware |
Shenyang Chemical and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Chemical and Marssenger Kitchenware
The main advantage of trading using opposite Shenyang Chemical and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Chemical position performs unexpectedly, Marssenger Kitchenware 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 Marssenger Kitchenware will offset losses from the drop in Marssenger Kitchenware's long position.| Shenyang Chemical vs. Zijin Mining Group | Shenyang Chemical vs. Baoshan Iron Steel | Shenyang Chemical vs. Rongsheng Petrochemical Co | Shenyang Chemical vs. Hoshine Silicon Ind |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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