Correlation Between Shenyang Chemical and Fujian Nanwang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenyang Chemical Industry and Fujian Nanwang Environment, you can compare the effects of market volatilities on Shenyang Chemical and Fujian Nanwang 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 Fujian Nanwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Chemical and Fujian Nanwang.
Diversification Opportunities for Shenyang Chemical and Fujian Nanwang
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shenyang and Fujian is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Chemical Industry and Fujian Nanwang Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Nanwang 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 Fujian Nanwang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Nanwang Envir has no effect on the direction of Shenyang Chemical i.e., Shenyang Chemical and Fujian Nanwang go up and down completely randomly.
Pair Corralation between Shenyang Chemical and Fujian Nanwang
Assuming the 90 days trading horizon Shenyang Chemical Industry is expected to generate 0.99 times more return on investment than Fujian Nanwang. However, Shenyang Chemical Industry is 1.01 times less risky than Fujian Nanwang. It trades about -0.02 of its potential returns per unit of risk. Fujian Nanwang Environment is currently generating about -0.04 per unit of risk. If you would invest 505.00 in Shenyang Chemical Industry on October 21, 2024 and sell it today you would lose (174.00) from holding Shenyang Chemical Industry or give up 34.46% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 81.16% |
Values | Daily Returns |
Shenyang Chemical Industry vs. Fujian Nanwang Environment
Performance |
Timeline |
Shenyang Chemical |
Fujian Nanwang Envir |
Shenyang Chemical and Fujian Nanwang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenyang Chemical and Fujian Nanwang
The main advantage of trading using opposite Shenyang Chemical and Fujian Nanwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Chemical position performs unexpectedly, Fujian Nanwang 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 Fujian Nanwang will offset losses from the drop in Fujian Nanwang's long position.Shenyang Chemical vs. JuneYao Dairy Co | Shenyang Chemical vs. Hainan Airlines Co | Shenyang Chemical vs. China Eastern Airlines | Shenyang Chemical vs. Beijing Shunxin Agriculture |
Fujian Nanwang vs. Jilin Chemical Fibre | Fujian Nanwang vs. Hunan TV Broadcast | Fujian Nanwang vs. Road Environment Technology | Fujian Nanwang vs. Shenyang Chemical Industry |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
Global Correlations Find global opportunities by holding instruments from different markets | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |