Correlation Between Sinosteel Engineering and Yangmei Chemical
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By analyzing existing cross correlation between Sinosteel Engineering and and Yangmei Chemical Co, you can compare the effects of market volatilities on Sinosteel Engineering and Yangmei 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 Sinosteel Engineering with a short position of Yangmei Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinosteel Engineering and Yangmei Chemical.
Diversification Opportunities for Sinosteel Engineering and Yangmei Chemical
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinosteel and Yangmei is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Sinosteel Engineering and and Yangmei Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yangmei Chemical and Sinosteel Engineering 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 Sinosteel Engineering and are associated (or correlated) with Yangmei Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yangmei Chemical has no effect on the direction of Sinosteel Engineering i.e., Sinosteel Engineering and Yangmei Chemical go up and down completely randomly.
Pair Corralation between Sinosteel Engineering and Yangmei Chemical
Assuming the 90 days trading horizon Sinosteel Engineering and is expected to under-perform the Yangmei Chemical. But the stock apears to be less risky and, when comparing its historical volatility, Sinosteel Engineering and is 1.92 times less risky than Yangmei Chemical. The stock trades about -0.06 of its potential returns per unit of risk. The Yangmei Chemical Co is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 243.00 in Yangmei Chemical Co on September 14, 2024 and sell it today you would earn a total of 39.00 from holding Yangmei Chemical Co or generate 16.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinosteel Engineering and vs. Yangmei Chemical Co
Performance |
| Timeline |
| Sinosteel Engineering and |
| Yangmei Chemical |
Sinosteel Engineering and Yangmei Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinosteel Engineering and Yangmei Chemical
The main advantage of trading using opposite Sinosteel Engineering and Yangmei Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinosteel Engineering position performs unexpectedly, Yangmei 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 Yangmei Chemical will offset losses from the drop in Yangmei Chemical's long position.| Sinosteel Engineering vs. Ming Yang Smart | Sinosteel Engineering vs. 159681 | Sinosteel Engineering vs. 159005 | Sinosteel Engineering vs. Loctek Ergonomic Technology |
| Yangmei Chemical vs. Sinocat Environmental Technology | Yangmei Chemical vs. Sinosteel Engineering and | Yangmei Chemical vs. Shenzhen MYS Environmental | Yangmei Chemical vs. Tianjin Capital Environmental |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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