Correlation Between Shenyang Chemical and Cinda Securities
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By analyzing existing cross correlation between Shenyang Chemical Industry and Cinda Securities Co, you can compare the effects of market volatilities on Shenyang Chemical and Cinda Securities 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 Cinda Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Chemical and Cinda Securities.
Diversification Opportunities for Shenyang Chemical and Cinda Securities
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenyang and Cinda is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Chemical Industry and Cinda Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinda Securities 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 Cinda Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cinda Securities has no effect on the direction of Shenyang Chemical i.e., Shenyang Chemical and Cinda Securities go up and down completely randomly.
Pair Corralation between Shenyang Chemical and Cinda Securities
Assuming the 90 days trading horizon Shenyang Chemical Industry is expected to generate 1.48 times more return on investment than Cinda Securities. However, Shenyang Chemical is 1.48 times more volatile than Cinda Securities Co. It trades about -0.05 of its potential returns per unit of risk. Cinda Securities Co is currently generating about -0.24 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Chemical Industry vs. Cinda Securities Co
Performance |
| Timeline |
| Shenyang Chemical |
| Cinda Securities |
Shenyang Chemical and Cinda Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Chemical and Cinda Securities
The main advantage of trading using opposite Shenyang Chemical and Cinda Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Chemical position performs unexpectedly, Cinda Securities 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 Cinda Securities will offset losses from the drop in Cinda Securities' 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 |
| Cinda Securities vs. Fujian Boss Software | Cinda Securities vs. Glodon Software Co | Cinda Securities vs. Do Fluoride Chemicals Co | Cinda Securities vs. Miracll Chemicals 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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