Correlation Between Shandong Polymer and Vontron Technology
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By analyzing existing cross correlation between Shandong Polymer Biochemicals and Vontron Technology Co, you can compare the effects of market volatilities on Shandong Polymer and Vontron Technology 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 Shandong Polymer with a short position of Vontron Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Polymer and Vontron Technology.
Diversification Opportunities for Shandong Polymer and Vontron Technology
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Vontron is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Polymer Biochemicals and Vontron Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vontron Technology and Shandong Polymer 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 Shandong Polymer Biochemicals are associated (or correlated) with Vontron Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vontron Technology has no effect on the direction of Shandong Polymer i.e., Shandong Polymer and Vontron Technology go up and down completely randomly.
Pair Corralation between Shandong Polymer and Vontron Technology
Assuming the 90 days trading horizon Shandong Polymer Biochemicals is expected to generate 2.11 times more return on investment than Vontron Technology. However, Shandong Polymer is 2.11 times more volatile than Vontron Technology Co. It trades about 0.13 of its potential returns per unit of risk. Vontron Technology Co is currently generating about -0.02 per unit of risk. If you would invest 401.00 in Shandong Polymer Biochemicals on August 25, 2024 and sell it today you would earn a total of 44.00 from holding Shandong Polymer Biochemicals or generate 10.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Polymer Biochemicals vs. Vontron Technology Co
Performance |
| Timeline |
| Shandong Polymer Bio |
| Vontron Technology |
Shandong Polymer and Vontron Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Polymer and Vontron Technology
The main advantage of trading using opposite Shandong Polymer and Vontron Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Polymer position performs unexpectedly, Vontron Technology 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 Vontron Technology will offset losses from the drop in Vontron Technology's long position.| Shandong Polymer vs. Zijin Mining Group | Shandong Polymer vs. Wanhua Chemical Group | Shandong Polymer vs. Shandong Gold Mining | Shandong Polymer vs. Inner Mongolia BaoTou |
| Vontron Technology vs. Chengdu Kanghua Biological | Vontron Technology vs. Beijing Wantai Biological | Vontron Technology vs. Suzhou Novoprotein Scientific | Vontron Technology vs. Aluminum Corp of |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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