Correlation Between Shenyang Chemical and Yangmei Chemical
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By analyzing existing cross correlation between Shenyang Chemical Industry and Yangmei Chemical Co, you can compare the effects of market volatilities on Shenyang Chemical and Yangmei Chemical 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 Yangmei Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Chemical and Yangmei Chemical.
Diversification Opportunities for Shenyang Chemical and Yangmei Chemical
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenyang and Yangmei is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Chemical Industry and Yangmei Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yangmei Chemical 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 Yangmei Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yangmei Chemical has no effect on the direction of Shenyang Chemical i.e., Shenyang Chemical and Yangmei Chemical go up and down completely randomly.
Pair Corralation between Shenyang Chemical and Yangmei Chemical
Assuming the 90 days trading horizon Shenyang Chemical Industry is expected to generate 1.0 times more return on investment than Yangmei Chemical. However, Shenyang Chemical Industry is 1.0 times less risky than Yangmei Chemical. It trades about -0.02 of its potential returns per unit of risk. Yangmei Chemical Co is currently generating about -0.02 per unit of risk. If you would invest 507.00 in Shenyang Chemical Industry on November 2, 2024 and sell it today you would lose (184.00) from holding Shenyang Chemical Industry or give up 36.29% 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. Yangmei Chemical Co
Performance |
| Timeline |
| Shenyang Chemical |
| Yangmei Chemical |
Shenyang Chemical and Yangmei Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Chemical and Yangmei Chemical
The main advantage of trading using opposite Shenyang Chemical and Yangmei Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Chemical position performs unexpectedly, Yangmei Chemical 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 Yangmei Chemical will offset losses from the drop in Yangmei Chemical'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 |
| Yangmei Chemical vs. Beijing Jiaman Dress | Yangmei Chemical vs. GRINM Semiconductor Materials | Yangmei Chemical vs. Zbit Semiconductor A | Yangmei Chemical vs. Union Semiconductor 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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