Correlation Between Shenyang Chemical and AECC Aviation
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By analyzing existing cross correlation between Shenyang Chemical Industry and AECC Aviation Power, you can compare the effects of market volatilities on Shenyang Chemical and AECC Aviation 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 AECC Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Chemical and AECC Aviation.
Diversification Opportunities for Shenyang Chemical and AECC Aviation
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shenyang and AECC is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Chemical Industry and AECC Aviation Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AECC Aviation Power 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 AECC Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AECC Aviation Power has no effect on the direction of Shenyang Chemical i.e., Shenyang Chemical and AECC Aviation go up and down completely randomly.
Pair Corralation between Shenyang Chemical and AECC Aviation
Assuming the 90 days trading horizon Shenyang Chemical Industry is expected to generate 1.51 times more return on investment than AECC Aviation. However, Shenyang Chemical is 1.51 times more volatile than AECC Aviation Power. It trades about -0.05 of its potential returns per unit of risk. AECC Aviation Power is currently generating about -0.26 per unit of risk. If you would invest 332.00 in Shenyang Chemical Industry on November 3, 2024 and sell it today you would lose (9.00) from holding Shenyang Chemical Industry or give up 2.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Chemical Industry vs. AECC Aviation Power
Performance |
| Timeline |
| Shenyang Chemical |
| AECC Aviation Power |
Shenyang Chemical and AECC Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Chemical and AECC Aviation
The main advantage of trading using opposite Shenyang Chemical and AECC Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Chemical position performs unexpectedly, AECC Aviation 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 AECC Aviation will offset losses from the drop in AECC Aviation's long position.| Shenyang Chemical vs. Yunnan Jianzhijia Health Chain | Shenyang Chemical vs. Everjoy Health Group | Shenyang Chemical vs. Meinian Onehealth Healthcare | Shenyang Chemical vs. Youngy Health Co |
| AECC Aviation vs. Wuxi Double Elephant | AECC Aviation vs. Luyin Investment Group | AECC Aviation vs. Zhejiang Construction Investment | AECC Aviation vs. Postal Savings Bank |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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