Correlation Between Shenyang Chemical and Jiangsu Yueda
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By analyzing existing cross correlation between Shenyang Chemical Industry and Jiangsu Yueda Investment, you can compare the effects of market volatilities on Shenyang Chemical and Jiangsu Yueda 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 Jiangsu Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Chemical and Jiangsu Yueda.
Diversification Opportunities for Shenyang Chemical and Jiangsu Yueda
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenyang and Jiangsu is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Chemical Industry and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment 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 Jiangsu Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of Shenyang Chemical i.e., Shenyang Chemical and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between Shenyang Chemical and Jiangsu Yueda
Assuming the 90 days trading horizon Shenyang Chemical is expected to generate 1.27 times less return on investment than Jiangsu Yueda. In addition to that, Shenyang Chemical is 1.1 times more volatile than Jiangsu Yueda Investment. It trades about 0.04 of its total potential returns per unit of risk. Jiangsu Yueda Investment is currently generating about 0.06 per unit of volatility. If you would invest 410.00 in Jiangsu Yueda Investment on September 2, 2024 and sell it today you would earn a total of 63.00 from holding Jiangsu Yueda Investment or generate 15.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Chemical Industry vs. Jiangsu Yueda Investment
Performance |
| Timeline |
| Shenyang Chemical |
| Jiangsu Yueda Investment |
Shenyang Chemical and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Chemical and Jiangsu Yueda
The main advantage of trading using opposite Shenyang Chemical and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Chemical position performs unexpectedly, Jiangsu Yueda 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 Jiangsu Yueda will offset losses from the drop in Jiangsu Yueda's long position.| Shenyang Chemical vs. Zijin Mining Group | Shenyang Chemical vs. Wanhua Chemical Group | Shenyang Chemical vs. Baoshan Iron Steel | Shenyang Chemical vs. Shandong Gold Mining |
| Jiangsu Yueda vs. China State Construction | Jiangsu Yueda vs. Poly Real Estate | Jiangsu Yueda vs. China Vanke Co | Jiangsu Yueda vs. China Merchants Shekou |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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