Correlation Between Shenyang Chemical and Shanghai Rural
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By analyzing existing cross correlation between Shenyang Chemical Industry and Shanghai Rural Commercial, you can compare the effects of market volatilities on Shenyang Chemical and Shanghai Rural 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 Shanghai Rural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Chemical and Shanghai Rural.
Diversification Opportunities for Shenyang Chemical and Shanghai Rural
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenyang and Shanghai is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Chemical Industry and Shanghai Rural Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rural Commercial 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 Shanghai Rural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rural Commercial has no effect on the direction of Shenyang Chemical i.e., Shenyang Chemical and Shanghai Rural go up and down completely randomly.
Pair Corralation between Shenyang Chemical and Shanghai Rural
Assuming the 90 days trading horizon Shenyang Chemical Industry is expected to generate 1.88 times more return on investment than Shanghai Rural. However, Shenyang Chemical is 1.88 times more volatile than Shanghai Rural Commercial. It trades about 0.15 of its potential returns per unit of risk. Shanghai Rural Commercial is currently generating about 0.13 per unit of risk. If you would invest 354.00 in Shenyang Chemical Industry on September 13, 2024 and sell it today you would earn a total of 36.00 from holding Shenyang Chemical Industry or generate 10.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Chemical Industry vs. Shanghai Rural Commercial
Performance |
| Timeline |
| Shenyang Chemical |
| Shanghai Rural Commercial |
Shenyang Chemical and Shanghai Rural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Chemical and Shanghai Rural
The main advantage of trading using opposite Shenyang Chemical and Shanghai Rural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Chemical position performs unexpectedly, Shanghai Rural 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 Shanghai Rural will offset losses from the drop in Shanghai Rural's long position.| Shenyang Chemical vs. Zhengzhou Coal Mining | Shenyang Chemical vs. Will Semiconductor Co | Shenyang Chemical vs. Wuhan Hvsen Biotechnology | Shenyang Chemical vs. Huaibei Mining Holdings |
| Shanghai Rural vs. Kontour Medical Technology | Shanghai Rural vs. GKHT Medical Technology | Shanghai Rural vs. Yuan Longping High tech | Shanghai Rural vs. Double Medical Technology |
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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