Correlation Between Soyea Technology and Longxing Chemical
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By analyzing existing cross correlation between Soyea Technology Co and Longxing Chemical Stock, you can compare the effects of market volatilities on Soyea Technology and Longxing 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 Longxing Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soyea Technology and Longxing Chemical.
Diversification Opportunities for Soyea Technology and Longxing Chemical
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Soyea and Longxing is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Soyea Technology Co and Longxing Chemical Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longxing Chemical Stock 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 Longxing Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longxing Chemical Stock has no effect on the direction of Soyea Technology i.e., Soyea Technology and Longxing Chemical go up and down completely randomly.
Pair Corralation between Soyea Technology and Longxing Chemical
Assuming the 90 days trading horizon Soyea Technology Co is expected to generate 1.14 times more return on investment than Longxing Chemical. However, Soyea Technology is 1.14 times more volatile than Longxing Chemical Stock. It trades about 0.29 of its potential returns per unit of risk. Longxing Chemical Stock is currently generating about 0.25 per unit of risk. If you would invest 482.00 in Soyea Technology Co on September 5, 2024 and sell it today you would earn a total of 90.00 from holding Soyea Technology Co or generate 18.67% 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. Longxing Chemical Stock
Performance |
| Timeline |
| Soyea Technology |
| Longxing Chemical Stock |
Soyea Technology and Longxing Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soyea Technology and Longxing Chemical
The main advantage of trading using opposite Soyea Technology and Longxing Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soyea Technology position performs unexpectedly, Longxing 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 Longxing Chemical will offset losses from the drop in Longxing Chemical's long position.| Soyea Technology vs. Nanjing Putian Telecommunications | Soyea Technology vs. Tianjin Realty Development | Soyea Technology vs. Shenyang Huitian Thermal | Soyea Technology vs. Shenzhen Changfang Light |
| Longxing Chemical vs. Wuhan Yangtze Communication | Longxing Chemical vs. Sinofibers Technology Co | Longxing Chemical vs. Soyea Technology Co | Longxing Chemical vs. Citic Guoan Wine |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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