Correlation Between Shenyang Chemical and Yili Chuanning
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By analyzing existing cross correlation between Shenyang Chemical Industry and Yili Chuanning Biotechnology, you can compare the effects of market volatilities on Shenyang Chemical and Yili Chuanning 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 Yili Chuanning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Chemical and Yili Chuanning.
Diversification Opportunities for Shenyang Chemical and Yili Chuanning
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenyang and Yili is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Chemical Industry and Yili Chuanning Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yili Chuanning Biote 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 Yili Chuanning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yili Chuanning Biote has no effect on the direction of Shenyang Chemical i.e., Shenyang Chemical and Yili Chuanning go up and down completely randomly.
Pair Corralation between Shenyang Chemical and Yili Chuanning
Assuming the 90 days trading horizon Shenyang Chemical Industry is expected to generate 0.89 times more return on investment than Yili Chuanning. However, Shenyang Chemical Industry is 1.12 times less risky than Yili Chuanning. It trades about 0.03 of its potential returns per unit of risk. Yili Chuanning Biotechnology is currently generating about 0.02 per unit of risk. If you would invest 302.00 in Shenyang Chemical Industry on November 3, 2024 and sell it today you would earn a total of 21.00 from holding Shenyang Chemical Industry or generate 6.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Chemical Industry vs. Yili Chuanning Biotechnology
Performance |
| Timeline |
| Shenyang Chemical |
| Yili Chuanning Biote |
Shenyang Chemical and Yili Chuanning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Chemical and Yili Chuanning
The main advantage of trading using opposite Shenyang Chemical and Yili Chuanning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Chemical position performs unexpectedly, Yili Chuanning 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 Yili Chuanning will offset losses from the drop in Yili Chuanning's long position.| Shenyang Chemical vs. Fibocom Wireless | Shenyang Chemical vs. Runjian Communication Co | Shenyang Chemical vs. Guangdong Jinma Entertainment | Shenyang Chemical vs. Fiberhome Telecommunication Technologies |
| Yili Chuanning vs. PetroChina Co Ltd | Yili Chuanning vs. China Railway Construction | Yili Chuanning vs. China Mobile Limited | Yili Chuanning vs. Industrial and Commercial |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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