Correlation Between Shandong Polymer and Everjoy Health
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By analyzing existing cross correlation between Shandong Polymer Biochemicals and Everjoy Health Group, you can compare the effects of market volatilities on Shandong Polymer and Everjoy Health 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 Everjoy Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Polymer and Everjoy Health.
Diversification Opportunities for Shandong Polymer and Everjoy Health
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Everjoy is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Polymer Biochemicals and Everjoy Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everjoy Health Group 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 Everjoy Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everjoy Health Group has no effect on the direction of Shandong Polymer i.e., Shandong Polymer and Everjoy Health go up and down completely randomly.
Pair Corralation between Shandong Polymer and Everjoy Health
Assuming the 90 days trading horizon Shandong Polymer Biochemicals is expected to generate 0.53 times more return on investment than Everjoy Health. However, Shandong Polymer Biochemicals is 1.89 times less risky than Everjoy Health. It trades about 0.01 of its potential returns per unit of risk. Everjoy Health Group is currently generating about -0.07 per unit of risk. If you would invest 434.00 in Shandong Polymer Biochemicals on October 30, 2024 and sell it today you would earn a total of 0.00 from holding Shandong Polymer Biochemicals or generate 0.0% 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. Everjoy Health Group
Performance |
| Timeline |
| Shandong Polymer Bio |
| Everjoy Health Group |
Shandong Polymer and Everjoy Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Polymer and Everjoy Health
The main advantage of trading using opposite Shandong Polymer and Everjoy Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Polymer position performs unexpectedly, Everjoy Health 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 Everjoy Health will offset losses from the drop in Everjoy Health's long position.| Shandong Polymer vs. Zijin Mining Group | Shandong Polymer vs. Wanhua Chemical Group | Shandong Polymer vs. Baoshan Iron Steel | Shandong Polymer vs. Shandong Gold Mining |
| Everjoy Health vs. Ming Yang Smart | Everjoy Health vs. 159681 | Everjoy Health vs. 159005 | Everjoy Health vs. Loctek Ergonomic Technology |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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