Correlation Between Shenyang Chemical and Hunan Airbluer
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By analyzing existing cross correlation between Shenyang Chemical Industry and Hunan Airbluer Environmental, you can compare the effects of market volatilities on Shenyang Chemical and Hunan Airbluer 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 Hunan Airbluer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Chemical and Hunan Airbluer.
Diversification Opportunities for Shenyang Chemical and Hunan Airbluer
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenyang and Hunan is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Chemical Industry and Hunan Airbluer Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Airbluer Envir 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 Hunan Airbluer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Airbluer Envir has no effect on the direction of Shenyang Chemical i.e., Shenyang Chemical and Hunan Airbluer go up and down completely randomly.
Pair Corralation between Shenyang Chemical and Hunan Airbluer
Assuming the 90 days trading horizon Shenyang Chemical Industry is expected to under-perform the Hunan Airbluer. In addition to that, Shenyang Chemical is 1.33 times more volatile than Hunan Airbluer Environmental. It trades about -0.24 of its total potential returns per unit of risk. Hunan Airbluer Environmental is currently generating about 0.13 per unit of volatility. If you would invest 4,730 in Hunan Airbluer Environmental on October 16, 2024 and sell it today you would earn a total of 348.00 from holding Hunan Airbluer Environmental or generate 7.36% 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. Hunan Airbluer Environmental
Performance |
| Timeline |
| Shenyang Chemical |
| Hunan Airbluer Envir |
Shenyang Chemical and Hunan Airbluer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Chemical and Hunan Airbluer
The main advantage of trading using opposite Shenyang Chemical and Hunan Airbluer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Chemical position performs unexpectedly, Hunan Airbluer 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 Hunan Airbluer will offset losses from the drop in Hunan Airbluer'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 |
| Hunan Airbluer vs. Shenzhen MYS Environmental | Hunan Airbluer vs. AVIC Fund Management | Hunan Airbluer vs. Rongan Property Co | Hunan Airbluer vs. Haoxiangni Jujube 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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