Correlation Between Soyea Technology and Jilin Chemical
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By analyzing existing cross correlation between Soyea Technology Co and Jilin Chemical Fibre, you can compare the effects of market volatilities on Soyea Technology and Jilin Chemical 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 Soyea Technology with a short position of Jilin Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soyea Technology and Jilin Chemical.
Diversification Opportunities for Soyea Technology and Jilin Chemical
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Soyea and Jilin is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Soyea Technology Co and Jilin Chemical Fibre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin Chemical Fibre and Soyea Technology 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 Soyea Technology Co are associated (or correlated) with Jilin Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin Chemical Fibre has no effect on the direction of Soyea Technology i.e., Soyea Technology and Jilin Chemical go up and down completely randomly.
Pair Corralation between Soyea Technology and Jilin Chemical
Assuming the 90 days trading horizon Soyea Technology is expected to generate 2.44 times less return on investment than Jilin Chemical. But when comparing it to its historical volatility, Soyea Technology Co is 1.1 times less risky than Jilin Chemical. It trades about 0.01 of its potential returns per unit of risk. Jilin Chemical Fibre is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 341.00 in Jilin Chemical Fibre on September 4, 2024 and sell it today you would earn a total of 54.00 from holding Jilin Chemical Fibre or generate 15.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Soyea Technology Co vs. Jilin Chemical Fibre
Performance |
| Timeline |
| Soyea Technology |
| Jilin Chemical Fibre |
Soyea Technology and Jilin Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soyea Technology and Jilin Chemical
The main advantage of trading using opposite Soyea Technology and Jilin Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soyea Technology position performs unexpectedly, Jilin Chemical 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 Jilin Chemical will offset losses from the drop in Jilin Chemical's long position.| Soyea Technology vs. China Aluminum International | Soyea Technology vs. Humanwell Healthcare Group | Soyea Technology vs. Ye Chiu Metal | Soyea Technology vs. Tianshan Aluminum Group |
| Jilin Chemical vs. Zijin Mining Group | Jilin Chemical vs. Wanhua Chemical Group | Jilin Chemical vs. Baoshan Iron Steel | Jilin Chemical vs. Shandong Gold Mining |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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