Correlation Between Shenyang Chemical and Guangdong Skychem
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By analyzing existing cross correlation between Shenyang Chemical Industry and Guangdong Skychem Technology, you can compare the effects of market volatilities on Shenyang Chemical and Guangdong Skychem 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 Guangdong Skychem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Chemical and Guangdong Skychem.
Diversification Opportunities for Shenyang Chemical and Guangdong Skychem
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenyang and Guangdong is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Chemical Industry and Guangdong Skychem Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Skychem 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 Guangdong Skychem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Skychem has no effect on the direction of Shenyang Chemical i.e., Shenyang Chemical and Guangdong Skychem go up and down completely randomly.
Pair Corralation between Shenyang Chemical and Guangdong Skychem
Assuming the 90 days trading horizon Shenyang Chemical Industry is expected to generate 0.53 times more return on investment than Guangdong Skychem. However, Shenyang Chemical Industry is 1.88 times less risky than Guangdong Skychem. It trades about -0.08 of its potential returns per unit of risk. Guangdong Skychem Technology is currently generating about -0.1 per unit of risk. If you would invest 337.00 in Shenyang Chemical Industry on November 1, 2024 and sell it today you would lose (14.00) from holding Shenyang Chemical Industry or give up 4.15% 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. Guangdong Skychem Technology
Performance |
| Timeline |
| Shenyang Chemical |
| Guangdong Skychem |
Shenyang Chemical and Guangdong Skychem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Chemical and Guangdong Skychem
The main advantage of trading using opposite Shenyang Chemical and Guangdong Skychem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Chemical position performs unexpectedly, Guangdong Skychem 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 Guangdong Skychem will offset losses from the drop in Guangdong Skychem's long position.| Shenyang Chemical vs. Hua Xia Bank | Shenyang Chemical vs. Panda Financial Holding | Shenyang Chemical vs. Shenzhen Centralcon Investment | Shenyang Chemical vs. Lecron Energy Saving |
| Guangdong Skychem vs. China World Trade | Guangdong Skychem vs. Fujian Anjoy Foods | Guangdong Skychem vs. Shanghai Ziyan Foods | Guangdong Skychem vs. Shenyang Chemical Industry |
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 CEOs Directory module to screen CEOs from public companies around the world.
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