Correlation Between Shenyang Chemical and Pengxin International
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenyang Chemical Industry and Pengxin International Mining, you can compare the effects of market volatilities on Shenyang Chemical and Pengxin International 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 Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Chemical and Pengxin International.
Diversification Opportunities for Shenyang Chemical and Pengxin International
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenyang and Pengxin is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Chemical Industry and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International 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 Pengxin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pengxin International has no effect on the direction of Shenyang Chemical i.e., Shenyang Chemical and Pengxin International go up and down completely randomly.
Pair Corralation between Shenyang Chemical and Pengxin International
Assuming the 90 days trading horizon Shenyang Chemical Industry is expected to generate 0.95 times more return on investment than Pengxin International. However, Shenyang Chemical Industry is 1.05 times less risky than Pengxin International. It trades about 0.01 of its potential returns per unit of risk. Pengxin International Mining is currently generating about 0.0 per unit of risk. If you would invest 417.00 in Shenyang Chemical Industry on September 12, 2024 and sell it today you would lose (32.00) from holding Shenyang Chemical Industry or give up 7.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Chemical Industry vs. Pengxin International Mining
Performance |
| Timeline |
| Shenyang Chemical |
| Pengxin International |
Shenyang Chemical and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Chemical and Pengxin International
The main advantage of trading using opposite Shenyang Chemical and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Chemical position performs unexpectedly, Pengxin International 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 Pengxin International will offset losses from the drop in Pengxin International's long position.| Shenyang Chemical vs. Zijin Mining Group | Shenyang Chemical vs. Wanhua Chemical Group | Shenyang Chemical vs. Baoshan Iron Steel | Shenyang Chemical vs. Rongsheng Petrochemical Co |
| Pengxin International vs. Zijin Mining Group | Pengxin International vs. Wanhua Chemical Group | Pengxin International vs. Baoshan Iron Steel | Pengxin International vs. Rongsheng Petrochemical 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |