Correlation Between Shenzhen Noposion and Zhejiang Satellite
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Zhejiang Satellite Petrochemical, you can compare the effects of market volatilities on Shenzhen Noposion and Zhejiang Satellite 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 Shenzhen Noposion with a short position of Zhejiang Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Zhejiang Satellite.
Diversification Opportunities for Shenzhen Noposion and Zhejiang Satellite
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and Zhejiang is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical and Zhejiang Satellite Petrochemic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Satellite and Shenzhen Noposion 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 Shenzhen Noposion Agrochemicals are associated (or correlated) with Zhejiang Satellite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Satellite has no effect on the direction of Shenzhen Noposion i.e., Shenzhen Noposion and Zhejiang Satellite go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Zhejiang Satellite
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to under-perform the Zhejiang Satellite. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Noposion Agrochemicals is 1.01 times less risky than Zhejiang Satellite. The stock trades about -0.33 of its potential returns per unit of risk. The Zhejiang Satellite Petrochemical is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,003 in Zhejiang Satellite Petrochemical on November 28, 2024 and sell it today you would earn a total of 60.00 from holding Zhejiang Satellite Petrochemical or generate 3.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. Zhejiang Satellite Petrochemic
Performance |
| Timeline |
| Shenzhen Noposion |
| Zhejiang Satellite |
Shenzhen Noposion and Zhejiang Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Zhejiang Satellite
The main advantage of trading using opposite Shenzhen Noposion and Zhejiang Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion position performs unexpectedly, Zhejiang Satellite 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 Zhejiang Satellite will offset losses from the drop in Zhejiang Satellite's long position.| Shenzhen Noposion vs. Vanfund Urban Investment | Shenzhen Noposion vs. Xiandai Investment Co | Shenzhen Noposion vs. Jiangsu Yueda Investment | Shenzhen Noposion vs. Chengdu Xingrong Investment |
| Zhejiang Satellite vs. Lecron Energy Saving | Zhejiang Satellite vs. Cicc Fund Management | Zhejiang Satellite vs. Agricultural Bank of | Zhejiang Satellite vs. Ningbo Tech Bank 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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