Correlation Between Shenyang Chemical and Dazhong Transportation
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenyang Chemical Industry and Dazhong Transportation Group, you can compare the effects of market volatilities on Shenyang Chemical and Dazhong Transportation 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 Dazhong Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Chemical and Dazhong Transportation.
Diversification Opportunities for Shenyang Chemical and Dazhong Transportation
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenyang and Dazhong is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Chemical Industry and Dazhong Transportation Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dazhong Transportation 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 Dazhong Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dazhong Transportation has no effect on the direction of Shenyang Chemical i.e., Shenyang Chemical and Dazhong Transportation go up and down completely randomly.
Pair Corralation between Shenyang Chemical and Dazhong Transportation
Assuming the 90 days trading horizon Shenyang Chemical Industry is expected to generate 1.53 times more return on investment than Dazhong Transportation. However, Shenyang Chemical is 1.53 times more volatile than Dazhong Transportation Group. It trades about 0.15 of its potential returns per unit of risk. Dazhong Transportation Group is currently generating about 0.09 per unit of risk. If you would invest 335.00 in Shenyang Chemical Industry on September 3, 2024 and sell it today you would earn a total of 34.00 from holding Shenyang Chemical Industry or generate 10.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Chemical Industry vs. Dazhong Transportation Group
Performance |
| Timeline |
| Shenyang Chemical |
| Dazhong Transportation |
Shenyang Chemical and Dazhong Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Chemical and Dazhong Transportation
The main advantage of trading using opposite Shenyang Chemical and Dazhong Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Chemical position performs unexpectedly, Dazhong Transportation 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 Dazhong Transportation will offset losses from the drop in Dazhong Transportation's long position.| Shenyang Chemical vs. Zijin Mining Group | Shenyang Chemical vs. Baoshan Iron Steel | Shenyang Chemical vs. Hoshine Silicon Ind |
| Dazhong Transportation vs. Cultural Investment Holdings | Dazhong Transportation vs. Gome Telecom Equipment | Dazhong Transportation vs. Bus Online Co | Dazhong Transportation vs. Holitech Technology 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |