Correlation Between Shenyang Chemical and Cabio Biotech
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By analyzing existing cross correlation between Shenyang Chemical Industry and Cabio Biotech Wuhan, you can compare the effects of market volatilities on Shenyang Chemical and Cabio Biotech 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 Cabio Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Chemical and Cabio Biotech.
Diversification Opportunities for Shenyang Chemical and Cabio Biotech
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenyang and Cabio is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Chemical Industry and Cabio Biotech Wuhan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cabio Biotech Wuhan 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 Cabio Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cabio Biotech Wuhan has no effect on the direction of Shenyang Chemical i.e., Shenyang Chemical and Cabio Biotech go up and down completely randomly.
Pair Corralation between Shenyang Chemical and Cabio Biotech
Assuming the 90 days trading horizon Shenyang Chemical Industry is expected to generate 0.79 times more return on investment than Cabio Biotech. However, Shenyang Chemical Industry is 1.26 times less risky than Cabio Biotech. It trades about -0.02 of its potential returns per unit of risk. Cabio Biotech Wuhan is currently generating about -0.03 per unit of risk. If you would invest 505.00 in Shenyang Chemical Industry on October 16, 2024 and sell it today you would lose (188.00) from holding Shenyang Chemical Industry or give up 37.23% 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. Cabio Biotech Wuhan
Performance |
| Timeline |
| Shenyang Chemical |
| Cabio Biotech Wuhan |
Shenyang Chemical and Cabio Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Chemical and Cabio Biotech
The main advantage of trading using opposite Shenyang Chemical and Cabio Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Chemical position performs unexpectedly, Cabio Biotech 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 Cabio Biotech will offset losses from the drop in Cabio Biotech's long position.| Shenyang Chemical vs. Luyin Investment Group | Shenyang Chemical vs. Chengdu Xingrong Investment | Shenyang Chemical vs. Nuode Investment Co | Shenyang Chemical vs. Western Metal Materials |
| Cabio Biotech vs. Ming Yang Smart | Cabio Biotech vs. 159681 | Cabio Biotech vs. 159005 | Cabio Biotech vs. Loctek Ergonomic 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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